- Analysts reserved their concerns over the prospects for Adobe Inc (NASDAQ:ADBE) amid current macro uncertainty ahead of its Q2 results.
- RBC Capital analyst Matthew Hedberg maintained Adobe with an Outperform and cut the price target from $600 to $500.
- An improved start to the year after a mixed Q4 led to the enhanced sentiment. However, it has now given way to many macro concerns.
- Hedberg remained concerned over the durability of customer spending and the resiliency, particularly of digital media, in an unstable environment.
- He felt the quarter was likely in line, with maintained guidance being enough to satisfy at current valuation. The PT cut reflects peer-multiple contraction.
- BMO Capital analyst Keith Bachman reiterated Adobe with an Outperform and lowered the price target from $535 to $450.
- Bachman conducted a survey to assess the health and growth potential of Adobe’s Creative Cloud. The survey included 300 responses from students, freelancers, and professional workers across different-sized organizations.
- While the data is not uniformly consistent, Bachman believes the survey suggests a longer-term risk that Creative Cloud growth will gradually slow. Bachman lowered his FY23 assumptions for ARR and Digital Media revenues, leaving the FY22 premises intact.
- Citigroup analyst Tyler Radke maintained Adobe with a Neutral and cut the price target from $455 to $425.
- Price Action: ADBE shares traded higher by 0.52% at $373.60 on the last check Tuesday.
