Adobe Stock Tanks On Disappointing Q4 Guidance: Why These Analysts Say Reaction Was ‘Overblown’
Shares of Adobe Inc (NASDAQ:ADBE) tanked in early trading on Friday, even after the company reported upbeat fiscal third-quarter results.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
- RBC Capital Markets analyst Matthew Swanson maintained an Outperform rating and price target of $610.
- Goldman Sachs analyst Kash Rangan reiterated a Buy rating and price target of $640.
- KeyBanc Capital Markets analyst Jackson Ader reaffirmed an Underweight rating and price target of $450.
- Oppenheimer analyst Brian Schwartz maintained an Outperform rating and price target of $625.
- Piper Sandler analyst Brent Bracelin reiterated an Overweight rating and price target of $635.
- JMP Securities analyst Patrick Walravens reaffirmed an Market Outperform rating on the stock.
- Bank of America Securities analyst Brad Sills maintained a Buy rating and price target of $640.
Check out other analyst stock ratings.
RBC Capital Markets: Adobe reported strong quarterly results, “beating expectations across the board,” Swanson said in a note. DM NNARR (Digital Media net-new annual recurring revenue) came in at $504 million, beating guidance by more than the average in the last four quarters.
The company exited the fiscal third quarter with RPO (remaining performance obligation) of $18.14 billion. This represents 15% year-on-year growth, which is “a sign of broader enterprise adoption,” Swanson stated. Management lowered guidance for the fiscal fourth quarter. This could prove conservative, “given recent innovation and execution” and an “additional potential catalyst from Adobe Max,” he further wrote, calling the stock weakness “an overreaction.”
Goldman Sachs: Adobe reported DM NNARR of $504 million, versus consensus of $462 million, driven by revenue growth of 11% and operating profit margin of 47% coming in higher than estimates of 10% and 46%, …
Full story available on Benzinga.com
