Adobe (NASDAQ:ADBE)
Adobe (NASDAQ:ADBE) stock gained up to 3% on Wednesday as investors started evaluating the media software giant’s 2019 forecast and its $20 billion purchase of the online design firm Figma.
Late on Tuesday, at the company’s Adobe Max Creativity Conference, Adobe said it anticipates 2023 profits of between $15.15 and $15.45 per share on sales between $19.1 billion and $19.3 billion. Adobe stock has also restated its profits and sales forecast for the next quarter.
Adobe CEO Shantanu Narayen has said that the business sees “a significant market opportunity that will drive Adobe’s next decade of development” in the industry by 2023.
Analyst Kash Rangan of Goldman Sachs said that Adobe (ADBE), which isn’t scheduled to disclose its following quarterly results until December, may have set the tone for what to anticipate from other top software firms with their forthcoming reports and outlooks.
Adobe’s advice “should be initially well-received by investors,” according to Rangan, “since we anticipate comparable cautious guidance for [2023] sales and strong operating cost assumptions will be adopted by software businesses.”
Adobe stock is rated “buy” by Rangan, with a price objective of “$475” per share. According to Rangan, the Figma purchase “may be transformational to the Adobe narrative with the potential for faster revenue and profitability growth beginning in 2024,” which might pique investors’ interest in Adobe (ADBE).
Analyst Brent Thill at Jefferies agreed that Adobe stock projection was “conservative” since it was lower than expected. Adobe (ADBE) stock was maintained as a buy by Thill. However, his price objective was reduced by $10 to $420.
Mizuho analyst Gregg Moskowitz stated that despite Adobe’s pessimistic forecast, the company “remains well-positioned to profit from digital transformation with its full end-to-end offering.”
There was talk earlier this month that activist investors would target Adobe stock over the company’s planned purchase of Figma.
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Adobe stock rise as analysts evaluates a ‘conservative’ 2023 projection.
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Author Shariq Khan 
