Adobe Receives a New Rating from Top Analyst

By Jason Carr

In a report released today, Brian Schwartz from Oppenheimer reiterated a Hold rating on Adobe (NASDAQ: ADBE). The company’s shares closed yesterday at $122.35, close to its 52-week high of $123.60.

Schwartz said:

“Adobe’s F1Q was another strong quarter for the business with upside to consensus estimates in the results and outlook. The business strength was broad-based across geographies and segments and driven by solid ARR growth, ARPU gains, and better retention. Additionally, the strong sales performance flowed through to record cash flow and best F1Q operating margin in five years. Bottom Line: Management’s execution and the business results continue to be impressive especially considering Adobe’s size.”

According to, Schwartz is a top 25 analyst with an average return of 20.0% and a 73.8% success rate. Schwartz covers the Technology sector, focusing on stocks such as Palo Alto Networks, Callidus Software, and Ultimate Software.

Adobe has an analyst consensus of Moderate Buy, with a price target consensus of $119.60.

Based on Adobe’s latest earnings report for the quarter ending November 30, the company posted quarterly revenue of $1.61 billion and quarterly net profit of $400 million. In comparison, last year the company earned revenue of $1.38 billion and had a net profit of $254 million.

Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. Last month, Robert K. Burgess, a Director at ADBE sold 25,000 shares for a total of $2,829,500.

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Adobe Systems, Inc. engages in the provision of digital marketing and digital media solutions. It operates through the following segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat. The Digital Marketing segment offers solutions, including analytics, social marketing, targeting, media optimization, digital experience management, and cross-channel campaign management, as well as premium video delivery and monetization. The Print and Publishing segment offers legacy products and services for eLearning solutions, technical document publishing, web application development, and high-end printing. The company was founded by Charles M. Geschke and John E. Warnock in December 1982 and is headquartered in San Jose, CA.