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Investor Insights

This summary was created by AI, based on 45 opinions in the last 12 months.

The reviews suggest that Adobe Systems is a strong company with a dominant position in the creative software industry. The stock has experienced some volatility due to factors such as AI applications, financial performance, and strategic acquisitions. However, experts generally agree that Adobe has a solid future outlook and potential for growth, particularly in the AI space.

Consensus
Positive
Valuation
Fair Value
DON'T BUY
Adobe Systems

It was overbought and has been falling off to today's price which is fairly valued. He feels it has 10 to 11% growth.

computer software / processing
BUY
Adobe Systems
Shares are falling today despite reporting a beat

He added to it recently. Creative folks won't abandon Adobe's products; it's too embedded in workflows. Fundamentally, this was a great report: beat top and bottom, 11% revenue growth, 15% EPS growth, and net new annualized recurring revenue beat but fell short of forward forecast. Adobe will benefit from AI. You should consider buying this now.

computer software / processing
BUY ON WEAKNESS
Adobe Systems
Shares are falling today despite reporting a beat

This is a buying opportunity. The AI hype was driving this stock, but that hype is getting flushed out today. They are a leader in their industry, and the costs are too high for a client company to leave Adobe and adopt another company's creative software. Adobe fundamentals remain strong and they will benefit from AI, but not as big as the market was expecting.

computer software / processing
BUY ON WEAKNESS
Adobe Systems

Happy that shares are falling today (14%) and wants it to fall another 10% before he buys it back at levels where he previously sold.

computer software / processing
BUY ON WEAKNESS
Adobe Systems
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $4.48 beat estimates of $4.38; revenue of $5.18B was marginally above estimates. EBITDA of $2.68B beat estimates by 4%. But guidance was conservative. Adobe's below-consensus 2Q outlook ($440 million vs. $460 million) for Digital Media net new annualized recurring revenue (ARR) stood out as the main sticking point of fiscal 1Q results. Management not raising the annual ARR target after beating 1Q guidance is being perceived as another negative. This is only a minor concern, as Adobe is more focused on new users to its AI products right now and less on monetization. This is the right strategy and should show an improvement in AI monetization in 2H, especially 4Q and in 2025. Digital Experience guidance of just 8% sales growth in 2Q was also disappointing, and may see some improvement in 2H. Adjusted operating margin gained 180 bps to 47.6%, its highest level, but the rate of improvement may taper in 2H on more AI investments. The stock is getting hit hard, but this is not the first time; it remains a global leader with strong expected growth. We would be more inclined to buy once the stock settles in.
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computer software / processing
PAST TOP PICK
Adobe Systems
(A Top Pick Feb 16/23, Up 59%)

One of the first adopters of AI with Firefly. Mind-blowing commercial productivity application. Trading in low 30s x earnings, with growth still in high teens. Despite runup, still good value and still buying.

computer software / processing
BUY
Adobe Systems

A great company. A huge part of the internet is creating content, and Adobe is the centre of that. A long-term buy. Great balance sheet. It won't go up 30% year after year, but you can sleep at night owning this. They're broadly into AI and will continue to benefit from it.

computer software / processing
WATCH
Adobe Systems

They report this week. Was reiterated a buy on Wall Street. Shares are back to last July's levels, slumping because the street feels Adobe isn't communicating its AI plans. Lags peers like CRM. This report and call are crucial.

computer software / processing
WATCH
Adobe Systems

Is concerned, because it hasn't performed as well as some software peers. It could be breaking below its 200-day moving average. They need their report next week to prevent this.

computer software / processing
premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK
Adobe Systems
Stockchase Research Editor: Michael O’Reilly

With ADBE planning to roll out AI related product enhancements, we select it as a TOP PICK. Cash reserves are growing, while shares are aggressively bought back.  It is expensive at 15x book, but it is supported by a 35% ROE.  We recommend setting a stop-loss at $450, looking to achieve $654 — upside potential of 18%. Yield 0%

(Analysts’ price target is $653.38)
computer software / processing
BUY ON WEAKNESS
Adobe Systems

Is down 10% in the past month and given the after-hours selling of Salesforce which just reported, ADBE will be pulled down too. Likes the company.

computer software / processing
BUY ON WEAKNESS
Adobe Systems

Excellent business. Asset light with high return on capital. Valuation is high, so would wait to buy in weakness. Good for long term investors. Strong moat in the business. Good leadership. Business model (subscription based) is excellent. 

computer software / processing
BUY
Adobe Systems
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

ADBE dropped on news that ChatGPT is going to launch a new video AI generator called Sora. The demos are quite impressive, but it is not available tro customers yet. This could threaten ADBE's video editing dominance, but it has its own product and is not going to standstill. Still, it is a threat, and ADBE needs to be proactive in fighting it. Revenue growth is forecast at 10%+ and EPS growth is forecast at 50% this year and 15% next year. The company has just under $4B net cash and generates $7B in free cash flow annually. We would consider its financial strength to be very solid.
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computer software / processing
TOP PICK
Adobe Systems

Benefitting from AI applications. Can more efficiently create a superior commercial product than before. Growing well, earnings growth runway is very good. Multiple's crept up a bit, but not a great concern because of the likelihood of rapid runway growth in revenues, earnings, and cashflow. Very strong on the name. No dividend.

(Analysts’ price target is $653.25)
computer software / processing
TOP PICK
Adobe Systems

Still runway, price target of $672. So many developments going on in AI. Generative AI can produce images from text. Transform a 2D image to high-quality 3D in 5 seconds. Buy in thirds here around $614, $580, and $550. No dividend.

(Analysts’ price target is $653.17)
computer software / processing
Showing 1 to 15 of 180 entries

Adobe Systems(ADBE-Q) Rating

Ranking : 5 out of 5

Bullish - Buy Signals / Votes : 37

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 38

Stockchase rating for Adobe Systems is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Adobe Systems(ADBE-Q) Frequently Asked Questions

What is Adobe Systems stock symbol?

Adobe Systems is a American stock, trading under the symbol ADBE-Q on the NASDAQ (ADBE). It is usually referred to as NASDAQ:ADBE or ADBE-Q

Is Adobe Systems a buy or a sell?

In the last year, 38 stock analysts published opinions about ADBE-Q. 37 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Adobe Systems.

Is Adobe Systems a good investment or a top pick?

Adobe Systems was recommended as a Top Pick by on . Read the latest stock experts ratings for Adobe Systems.

Why is Adobe Systems stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Adobe Systems worth watching?

38 stock analysts on Stockchase covered Adobe Systems In the last year. It is a trending stock that is worth watching.

What is Adobe Systems stock price?

On 2024-03-18, Adobe Systems (ADBE-Q) stock closed at a price of $513.79.