7 Adobe Analysts On Q4 Earnings: 'First Clean Quarter In A Year'

Zinger Key Points
  • Adobe’s earnings beat gives “measured optimism” into the new year, one analyst says.
  • The company remains well-positioned to benefit from digital transformation, another analyst stated.

Adobe Inc ADBE reported fourth-quarter revenues that were in-line with the consensus estimate, while delivering an earnings beat. Here's what the Street has to say Friday. 

Piper Sandler On Adobe

Analyst Brent Bracelin maintained an Overweight rating while raising the price target from $345 to $380.

“The healthy finish to F2022 punctuated by a $25M beat to net new DM ARR, despite increasing macro headwinds, gives us measured optimism entering next year,” Bracelin wrote in a note.

“The landscape for an expanding portfolio of creative tools and price increases appears to be helping insulate demand near-term,” he added.

RBC Capital Markets On Adobe

Analyst Matthew Swanson reiterated an Outperform rating and $395 price target. 

Adobe’s quarterly results were healthy and reflected “strong execution and solid demand trends, a welcome sight from the volatility we've seen industry-wide in 2022,” Swanson said. “While incremental details were limited, strong results continue to paint a more positive picture for the motivation behind Figma,” he added.

Mizuho Securities On Adobe

Analyst Gregg Moskowitz reaffirmed a Neutral rating while raising the price target from $360 to $370.

Adobe’s results were solid and “drama-free,” which is “a welcome result after what has generally been a choppy FY22,” Moskowitz wrote. “And while total revenue was only in line, net new Digital Media ARR of $576M handily beat expectations,” he added.

“ADBE remains well-positioned to benefit from digital transformation with its highly comprehensive end-to-end offering,” the analyst further mentioned.

Check out other analyst stock ratings.

BMO Capital Markets On Adobe

Analyst Keith Bachman maintained a Market Perform rating, while raising the price target from $332 to $390.

“We think Adobe delivered a good quarter in a challenging macro backdrop highlighted by a beat in net new ARR,” Bachman wrote in a note. “Additionally, we believe the $1.65 billion net new ARR guide for FY23 appears incrementally more reasonable if not conservative,” he added.

JMP Securities On Adobe

Analyst Patrick Walravens maintained a Market Perform rating on the stock.

“At a strategic level, some investors are worried about the Department of Justice’s review of the Figma acquisition and a general regulatory environment that seems against big tech mergers,” Walravens mentioned. He added that Adobe indicated that it is progressing as expected and is expected to complete the deal in 2023.

“Figma and Adobe operate in adjacent markets and there is virtually no product overlap today,” the analyst further wrote.

Baird On Adobe

Analyst Rob Oliver reiterated a Neutral rating and $355 price target. 

Adobe’s strong operational efficiency drove the profitability upside, Oliver stated. The fiscal 2023 guidance was “pretty consistent with consensus even as macro pressures continue,” he added.

The sentiment “could remain mixed over the coming quarters around the macro and potential Figma dilution,” the analyst further stated.

BofA Securities On Adobe

Analyst Brad Sills reaffirmed a Neutral rating while raising the price target from $350 to $400.

“Q4 represents the first clean quarter in a year” and the results suggest “improving visibility and improving headwinds from FX, macro & Russia,” Sills said.

“We are encouraged by broad strength across creative cloud ($13mn ARR upside), document cloud ($12mn ARR upside) & DX ($10mn rev upside),” he added.

ADBE Price Action: Shares of Adobe were trading 4.24% higher at $342.65 Friday morning. 

Photo via Shutterstock. 

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Posted In: Analyst ColorEarningsNewsPrice TargetReiterationTop StoriesAnalyst RatingsBairdBMO Capital MarketsBofA SecuritiesBrad SillsBrent BracelinGregg MoskowitzJMP SecuritiesKeith BachmanMatthew SwansonMizuho SecuritiesPatrick WalravensPiper SandlerRBC Capital MarketsRob Oliver
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