Adobe: Jefferies lowers TP after results

(CercleFinance.com) - Jefferies maintains its 'buy' recommendation on Adobe shares, the day after its quarterly earnings call, although has lowered corresponding its target price from $700 to $650, believing that it failed to meet investor expectations.


The stock was down -9% after the close as revenue and margin guidance for fiscal 2025 missed consensus, and questions persist about the pace of AI revenue monetization, the broker points out.

Jefferies expects Adobe to be a long-term AI winner, however. The stock is trading at an EV/EBITDA multiple of 19x, i.e. around a 20% discount to its 10-year average of 24x, the broker adds.


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