RBC Capital analyst Alex Zukin raised his price target on Adobe to $345 and kept his Outperform rating after its in-line Q4 guidance and above-consensus FY20 outlook for Digital Media recurring revenue. The analyst further cites Adobe management's focus on incremental margin contribution from its Digital Experience segment, stating that the company is confident about the business and adding that he expects a "leadership announcement there soon".
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Stifel analyst Tom Roderick price raised his price target on Adobe shares to $350 from $325 following the company's Q4 earnings report, which he called a "reminder" that Adobe is much more "aircraft carrier" than "leaky sailboat." Since reporting some unexpected challenges in Experience Cloud in September the company has been able to turn things around in that segment in a rapid manner, Roderick stated. He keeps a Buy rating on Adobe shares.
Wells Fargo analyst Phil Winslow raised his price target for Adobe to $315 from $285 and reiterated an Equal Weight rating following the company's Q4 "solid" Q4 results. Winslow tells investors in a research note that although he is impressed by Adobe's successful transition to subscription and ability to increase its total addressable market, he believes that the stock's current valuation reflects these trends along with much of the Experience Cloud opportunity ahead.
UBS analyst Jennifer Lowe raised her price target on Adobe to $360 and kept her Buy rating after its Q4 annualized recurring revenue, sales, and earnings all topped expectations. The analyst further notes that the company's Experience Cloud appears to be "near stability" with assets having been integrated and Adobe "feeling good: about the current direction of the business. Lowe believes that if execution remains strong, Adobe can sustain its historical 30- to 32-times price to next-12-months earnings.