Wall Street analysts’ views on Adobe’s stock
Earlier in this series, we took a look at market expectations from Adobe Systems’s (ADBE) soon-to-be-announced fiscal 3Q16 results. We saw that in the application software space, Adobe’s peers include Salesforce (CRM), SAP SE (SAP), and Workday (WDAY).
In this final part of the series, we’ll take a look at some market views on Adobe and some of the company’s metrics.
As we can see in the above graph, of the 28 analysts covering Adobe (ADBE) stock, there were no “sell” recommendations, ~75% of the analysts recommended a “buy,” and 25% recommended a “hold.”
Adobe’s double-digit revenue growth and consistently improving margins with reasonable debt levels have led to a rise in Adobe stock, adding to the optimism around the stock. Analysts’ recommendations for Adobe stock have improved slightly in the last few months.
Adobe’s price performance
Adobe’s stock price movement over the past month has been mildly negative. On September 13, 2016, the company’s stock fell ~2.3%. However, in the last year, Adobe’s stock value has risen ~25%.
Analyst target prices
The Wall Street consensus target price for Adobe was $112.79 per share on September 13, 2016. The median target price was $110.00. Adobe’s closing price was $98.77 that day.
Piper Jaffray has initiated research on Adobe stock as “overweight” with a price target of $125.
Adobe accounts for 0.24% of the SPDR S&P 500 ETF (SPY). SPY has 7% exposure to the application software sector.