Adobe (NASDAQ:ADBE) Earns Moderate Buy Rating from Analysts at CLSA

CLSA began coverage on shares of Adobe (NASDAQ:ADBE) in a report published on Monday morning, Marketbeat Ratings reports. The firm issued a moderate buy rating and a $300.00 price objective on the software company’s stock.

A number of other research analysts have also issued reports on ADBE. Morgan Stanley lowered Adobe from an “equal weight” rating to an “underweight” rating and decreased their target price for the company from $365.00 to $240.00 in a research report on Tuesday. Mizuho reduced their price objective on shares of Adobe from $270.00 to $245.00 and set a “neutral” rating for the company in a research report on Friday, June 12th. Barclays decreased their price target on shares of Adobe from $275.00 to $250.00 and set an “equal weight” rating on the stock in a research note on Friday, June 12th. DA Davidson lowered their target price on shares of Adobe from $300.00 to $250.00 and set a “buy” rating on the stock in a research note on Friday, June 12th. Finally, Jefferies Financial Group cut their price target on Adobe from $290.00 to $230.00 and set a “hold” rating for the company in a report on Friday, June 12th. Seven research analysts have rated the stock with a Buy rating, twenty-one have issued a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and an average price target of $271.30.

Adobe Stock Down 3.9%

Shares of ADBE opened at $218.36 on Monday. The stock’s 50-day moving average price is $227.72 and its 200-day moving average price is $252.88. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.42. The company has a market capitalization of $86.80 billion, a price-to-earnings ratio of 12.49, a PEG ratio of 0.76 and a beta of 1.43. Adobe has a 52 week low of $190.12 and a 52 week high of $376.16.

Adobe (NASDAQ:ADBE) last released its quarterly earnings data on Thursday, June 11th. The software company reported $5.96 EPS for the quarter, topping the consensus estimate of $5.82 by $0.14. Adobe had a return on equity of 65.11% and a net margin of 28.69%.The business had revenue of $6.62 billion for the quarter, compared to analyst estimates of $6.45 billion. During the same quarter in the prior year, the firm posted $5.06 EPS. The business’s quarterly revenue was up 12.7% compared to the same quarter last year. Adobe has set its FY 2026 guidance at 24.350-24.450 EPS and its Q3 2026 guidance at 6.050-6.100 EPS. On average, sell-side analysts predict that Adobe will post 19.81 EPS for the current year.

Adobe announced that its Board of Directors has initiated a share buyback program on Tuesday, April 21st that allows the company to buyback $25.00 billion in outstanding shares. This buyback authorization allows the software company to repurchase up to 24.9% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at Adobe

In other Adobe news, Director David A. Ricks bought 10,000 shares of the business’s stock in a transaction that occurred on Thursday, June 25th. The shares were purchased at an average cost of $194.51 per share, with a total value of $1,945,100.00. Following the purchase, the director directly owned 17,655 shares in the company, valued at approximately $3,434,074.05. This represents a 130.63% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CAO Jillian Forusz sold 755 shares of the company’s stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $246.25, for a total value of $185,918.75. Following the sale, the chief accounting officer directly owned 3,521 shares in the company, valued at $867,046.25. This represents a 17.66% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.20% of the company’s stock.

Institutional Trading of Adobe

Several institutional investors and hedge funds have recently made changes to their positions in ADBE. Norges Bank purchased a new position in Adobe during the 4th quarter worth $2,275,165,000. AQR Capital Management LLC boosted its stake in shares of Adobe by 55.2% in the third quarter. AQR Capital Management LLC now owns 2,587,399 shares of the software company’s stock valued at $912,705,000 after buying an additional 920,353 shares in the last quarter. Amundi boosted its position in shares of Adobe by 17.9% during the 3rd quarter. Amundi now owns 4,888,283 shares of the software company’s stock worth $1,711,583,000 after purchasing an additional 742,646 shares in the last quarter. State of Michigan Retirement System grew its position in Adobe by 566.1% during the first quarter. State of Michigan Retirement System now owns 820,823 shares of the software company’s stock worth $199,526,000 after buying an additional 697,600 shares during the period. Finally, AMF Tjanstepension AB acquired a new position in Adobe during the first quarter worth $167,494,000. 81.79% of the stock is owned by hedge funds and other institutional investors.

Adobe News Roundup

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: CLSA initiated coverage on Adobe with a “moderate buy” rating and a $300 price target, implying meaningful upside from current levels. Benzinga
• Positive Sentiment: One article highlighted Adobe’s growth profile and argued the stock may still offer value despite the selloff, suggesting some investors see the pullback as overdone. Zacks
• Neutral Sentiment: Adobe is continuing to add AI features, including multiple AI tools in its experimental camera app, which shows ongoing product innovation but is not yet a clear near-term revenue catalyst. MSN
• Neutral Sentiment: The company’s chief people officer sold a small number of shares for tax withholding, a routine insider transaction that does not by itself signal a major change in outlook. The Motley Fool
• Negative Sentiment: Morgan Stanley downgraded Adobe to underweight and cut its price target to $240 from $365, citing concerns about free-tier offerings pressuring subscriptions, leadership changes, and AI monetization risks. Yahoo Finance
• Negative Sentiment: Another analyst note said Adobe’s roughly 40% decline from its 52-week high reflects AI monetization doubts, slower near-term ARR growth, and uncertainty around leadership strategy. Zacks
• Negative Sentiment: Broader commentary this week also tied Adobe’s weakness to AI-related competitive pressure across software stocks, keeping sentiment cautious. Financial Post

Adobe Company Profile

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company’s core offerings are organized around digital media and digital experience.