Adobe price target raised to $500 from $450 at DA Davidson

Published 13/06/2025, 11:18
© Reuters.

DA Davidson raised its price target on Adobe stock (NASDAQ:ADBE) to $500 from $450 on Friday, while maintaining a Buy rating following the company’s better-than-expected fiscal second-quarter results. According to InvestingPro data, Adobe currently trades at $413.68, with analyst targets ranging from $380 to $630. The company’s impressive gross profit margins of 89% and strong financial health metrics suggest potential upside, with InvestingPro’s Fair Value analysis indicating the stock is currently undervalued.

The research firm cited Adobe’s increased pipeline visibility into the second half of fiscal 2025, which gave management confidence to modestly raise the full-year guidance excluding foreign exchange impacts and the earnings beat. The company has demonstrated solid performance with revenue growth of 10.5% and maintains a healthy return on equity of 47%.

DA Davidson noted that Adobe’s artificial intelligence contributions are tracking above internal expectations as the company continues to embed generative AI throughout its product suite.

The new $500 price target represents a multiple of 22 times the firm’s fiscal 2026 earnings per share estimate for Adobe.

DA Davidson also announced it will host a fireside chat with Adobe’s CFO Dan Durn and Steven Day, CFO of the Digital Experience Business, on June 18 at 1 PM Eastern Time.

In other recent news, Adobe has reported impressive financial results for the second quarter of fiscal year 2025, with revenue reaching $5.87 billion, an 11% increase year-over-year. The company’s earnings per share (EPS) also surpassed expectations, hitting $5.06 compared to the anticipated $4.97. Adobe’s Digital Media net new annual recurring revenue exceeded forecasts, reaching $460 million, while Digital Experience subscription revenue grew by about 11% year-over-year. Evercore ISI maintained its Outperform rating on Adobe, acknowledging the company’s AI revenue targets are on track to surpass the $250 million fiscal year 2025 exit rate. Additionally, Adobe launched several AI-driven products and expanded its partner ecosystem, enhancing its leadership in the creative and marketing technology sectors. The firm also outlined a positive revenue outlook for fiscal year 2025, targeting between $23.5 billion and $23.6 billion. Despite these achievements, Adobe’s stock saw a slight decline in after-hours trading. The company remains optimistic about its future, with plans to continue leveraging AI to drive growth and innovation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.