CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month target to $700 from $620, on P/E of about 33x our CY 25 EPS estimate, above peers but below historical averages. We tweak our FY 24 (Nov.) EPS estimate to $18.00 from $17.97 and keep FY 25 at $20.74. ADBE posts Nov-Q EPS of $4.27 vs. $3.60, beating the $4.14 consensus. Sales rose 13%, slightly above forecast, led by greater momentum across Creative Cloud (+12%), Document Cloud (+16%) and Experience Cloud (+10%). We are encouraged by a growing interest/pipeline for ADBE’s GenStudio while subscription demand across all segments remains strong. Despite FY 24 revenue guide slightly below guidance (EPS in-line), we think ADBE is being conservative and remain optimistic about its GenAI roadmap, with Firefly attracting interest across platforms (e.g., Photoshop and Illustrator) and given already 4.5-billion-plus AI images. Net cash stands at $4.2B while rising FCF ($9B in FY 24 and $10B in FY 25) supports buybacks but we see increasing risk of the Figma deal closing (break-up fee is $1B).