Wall Street analysts’ views on Adobe stock
Earlier in this series, we took a look at Adobe Systems’ (ADBE) recently announced fiscal 2Q16 results. In the application software space, Adobe’s peers include Salesforce.com (CRM), SAP SE (SAP), and Workday (WDAY). In this part, we’ll take a look at some Market views on Adobe and some of its metrics.
Of the 25 analysts covering Adobe stock, there were no “sell” recommendations. As we can see in the above graph, more than 70% of analysts have recommended a “buy.” The remainder are “hold” recommendations.
Adobe’s double-digit revenue growth and consistently improving margins with reasonable debt levels have led to a rise in Adobe stock.
Adobe’s price performance
Adobe’s stock price movement over the past month has been positive. As of June 23, 2016, the company’s stock rose ~2.9%. In the last one year, Adobe’s stock value has fallen ~21.2%.
Analyst target prices
The Wall Street consensus target price for Adobe was $110.70 per share on June 23, 2016. The median target price was $109.50. Adobe’s closing price was $99.72 that day.
Canaccord Genuity rated Adobe stock a “buy” with a price target of $110. Rosenblatt Securities rated the stock a “buy” with a price target of $120.
You could consider investing in the PowerShares QQQ ETF (QQQ) to gain exposure to Adobe. The company accounts for 0.84% of QQQ. Investors who would like application software exposure could also consider this ETF. Application software accounts for ~24% of QQQ.