Home Stock Adobe stock outlook as Jefferies, Credit Suisse and BofA analysts cut price target

Adobe stock outlook as Jefferies, Credit Suisse and BofA analysts cut price target

by

On Monday, Adobe Inc. (NASDAQ:ADBE) shares fell by 1.17%, extending its surprising post-earnings decline to more than 13%. The company announced its fiscal fourth-quarter results last Thursday before the open, beating analyst expectations on revenue and GAAP earnings. However, a wave of analyst price target cuts added pressure to the stock price, resulting in extended declines.

Jefferies analyst Brent Thill lowered his price target on Adobe shares to $680 per share from $760, citing general industry pressure. On the other hand, his Credit Suisse counterpart Philip Winslow now has a PT of $625, down from $700, while the Bank of America’s Brad Sills lowered to $640 from $720, attributing his analysis to lingering re-opening headwinds amid covid-19 pandemic.

The company posted FQ4 non-GAAP earnings per share of $3.20, in line with expectations. On the other hand, its GAAP EPS of $2.57 slightly outperformed expectations of $2.53, while revenue for the quarter surged by 20.2% from the same quarter last year to $4.11 billion, surpassing expectations by $20 million.

It may be time to pounce on growth

Although Adobe shares trade at a steep P/E ratio of 54.88, analysts expect its bottom line to grow by more than 80% this year before rising at an average annual rate of 15.35% over the next five years.

Therefore, the stock could be an exciting option for long-term investors.

Source – TradingView

Technically, Adobe shares seem to have recently plummeted to retest the trendline support of a sharply descending channel formation. As a result, the stock has fallen closer to oversold conditions, creating an opportunity for a rebound.

Investors could target technical rebounds at about $579.44 or higher at $607.60, while $523.32 and $494.71 are crucial support zones.

The post Adobe stock outlook as Jefferies, Credit Suisse and BofA analysts cut price target appeared first on Invezz.

You may also like