Adobe’s Stock Price Makes 52 Week Lows as Analysts Revise Down

Adobe’s stock price (NASDAQ: ADBE) has made fresh 52 week lows today, down 12.60% on the day having hit $380.71. This level marks the lowest point for the stock in almost 2 years, and comes as earnings leave markets wanting more, and analysts cutting targets as a result.

Mizuho Securities has maintained an Outperform rating for Adobe but adjusted its price target downward from $620 to $575. This decision follows Adobe’s first-quarter financial performance, where the company demonstrated a resilient growth path despite the difficulties faced over the past year.

Adobe’s latest financial report highlighted a promising 12.6% increase in Digital Media Annualised Recurring Revenue (ARR) compared to the previous year. The report shows that Adobe’s total revenue reached $5.71 billion, surpassing Wall Street’s expectations, which stood at $5.66 billion. In the same vein, Adobe has been successful in maintaining a robust gross profit margin of 89%, with a trailing twelve-month revenue totaling $21.5 billion.

A host of analysts have cut their price target on Adobe today, with sentiment firmly shifting. Those to revise down include

• RBC Capital ($530 from $550)
• BMO Capital ($495 from $515)
• BofA ($528 from $605)
• TD Cowen ($490 from $550)
• Baird ($490 from $500)
• Keybanc ($390 from $450)
• JP Morgan ($540 from $580)
• Stifel ($525 from $600)
• Oppenheimer ($530 from $560)
• Morgan Stanley ($600 from $660)

Despite sentiment shifting to the downside on the day, the consensus price targets remain a healthy potential upside from current levels.