UBS raises Adobe stock price target to $430 from $380

On Monday, UBS analyst Karl Keirstead adjusted the price target for Adobe (NASDAQ:ADBE) shares, increasing it to $430 from the previous $380, while maintaining a Neutral rating on the stock. With Adobe currently trading at $417.22, the new target suggests modest upside potential. According to InvestingPro data, analyst targets for Adobe range from $380 to $630, reflecting varied opinions on the stock’s potential. Keirstead’s assessment comes in anticipation of Adobe’s second-quarter earnings report, which is scheduled for release on Thursday, June 12, 2025.

In his commentary, Keirstead reflected on the recent interactions with Adobe partners and evaluated the impact of the company’s pricing adjustments. Despite a slight decline in activity during April, the overall macroeconomic effects were deemed modest. The analyst suggested that Adobe’s recent price hike could enhance the company’s prospects of achieving its 11% Annual Recurring Revenue (ARR) growth target for the fiscal year 2025. InvestingPro data shows Adobe’s impressive gross profit margin of 89.15% and revenue growth of 10.54% over the last twelve months, suggesting strong pricing power and market position.

Keirstead’s analysis indicated that while the potential for AI disruption in the industry remains a concern, the likelihood of Adobe hitting its ARR growth guidance has improved. This, according to the analyst, should help minimize the near-term downside risk for Adobe’s stock.

Adobe, a major player in the software industry, is navigating a dynamic market landscape. Keirstead’s update reflects a cautious optimism about the company’s performance in the face of these challenges. As the market awaits Adobe’s upcoming earnings report, UBS’s revised price target offers a new benchmark for investors monitoring the stock.

In other recent news, Adobe’s earnings and revenue outlook have been a focal point for analysts. RBC Capital has reaffirmed its Outperform rating on Adobe, maintaining a price target of $480, with expectations of strong second-quarter results. Jefferies also maintains a Buy rating with a $590 price target, expressing confidence in Adobe’s financial projections, particularly following a price increase for its Creative Cloud offerings. KeyBanc Capital Markets, however, holds a Sector Weight rating, noting that recent pricing adjustments are already factored into Adobe’s guidance.

Additionally, Adobe has announced the appointment of Louise Pentland as its new Chief Legal Officer and Executive Vice President, bringing extensive experience from her previous roles at companies like Roku (NASDAQ:ROKU) and PayPal (NASDAQ:PYPL). Meanwhile, Adobe is among several tech firms affected by the U.S. government’s initiative to cut federal contract spending, which could introduce challenges for companies in the sector. Despite these developments, analysts see potential in Adobe’s ventures into artificial intelligence and its strategic pricing decisions. These recent developments highlight Adobe’s ongoing efforts to optimize its revenue streams and strengthen its market position.

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