LearnBonds.com

Adobe Stock Price Is Likely to Trade Around $350, Analysts Say

Adobe (NASDAQ: ADBE) stock price generated substantial gains for investors in the last month. The upside momentum is backed by the trader’s sentiments regarding improving fundamentals. ADBE shares are currently trading around $300, up close to 32% year to date.

Analysts are expecting Adobe share price to extend the momentum in the coming months. Several catalysts are supporting Adobe stock price at present.

The expectations for double-digit growth in free cash flows are among the biggest catalyst. Adobe does not offer dividends. Therefore, it has the potential to invest the entire free cash flow in growth opportunities.

ADBE Adobe Inc. daily Stock Chart

Analysts Raised Adobe Stock Price Target

Several key firms have lifted ADBE shares target following strong third-quarter results. For instance, Jefferies has set a Buy rating with the price target of $340 to $350. The firm says there are numerous opportunities ahead with plenty of room for product innovations.

Citi raised Adobe’s price target to $321 from $313, citing a more optimistic outlook than previous expectations. Cowen believes ADBE has bullish long-term growth potential despite macroeconomic headwinds.

On the other hand, some market pundits are seeing the huge share price upside as a selling opportunity for value investors. They argue it’s a perfect time to capitalize on gains. This is because they expect a more challenging economic environment to shrink multiples across SaaS.

Strong Financial Numbers Enhances Bullish Sentiments for ADBE Shares

Adobe has generated record quarterly revenue of $2.83 billion in Q3 2019. This represents an increase of 24% from the past year period. The revenue growth is driven by the Digital Media segment – which grew 22% from the same period last year.

Moreover, the company has presented stronger than expected growth for fiscal 2020. Adobe forecasts 2020 revenue in the range of $13.15B compared to estimate for $13.14B. , The earnings per share is anticipated around $9.75, up from the estimate of $9.69. Overall, future fundamentals are supporting Adobe stock price upside momentum despite economic concerns.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

siraj sarwar

Based in Saudi Arabia, Siraj has a strong understanding of and passion for accounting and finance. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others.
HTML Snippets Powered By : XYZScripts.com