
Adobe (ADBE) Stock Forecast & Price Target
Adobe (ADBE) Analyst Ratings
Bulls say
Adobe is expecting a strong long-term growth outlook as they continue to invest in AI-enabled momentum and paid user acquisition/conversion. However, in the near-term, their decision to focus on MAU growth through a greater push on Freemium and deferral of planned pricing actions has caused the timeline for a return to double-digit organic ARR growth to become highly uncertain. This, combined with the departure of CFO Dan Durn and CEO Shantanu Narayen, creates heightened execution risk for the company. Their guidance also shows a deceleration in organic net-new ARR growth and eventual revenue deceleration, leading to a reiteration of our Underweight rating and a lowered price target of $195.
Bears say
Adobe is going through a difficult transition period as it focuses on its freemium offerings and faces increasing competition from AI labs and AI-native solutions. This has resulted in a decline in organic ARR, and operational metrics for the third quarter were lower than expected. Furthermore, the company is experiencing leadership transitions, adding to the execution risk. While Adobe's valuation may be attractive, the negative impact of these headwinds on its growth potential warrants a cautious outlook.
This aggregate rating is based on analysts' research of Adobe and is not a guaranteed prediction by Public.com or investment advice.
Adobe (ADBE) Analyst Forecast & Price Prediction
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