Adobe Stock Has 37% Upside, According to 1 Wall Street Analyst
Despite recently beating Wall Street's expectations in its fiscal 2024 first-quarter earnings report, (NASDAQ: ADBE) has fallen roughly 12% after guiding for "only" 9% revenue growth at the midpoint of management's guidance for the current quarter.
This outlook disappointed investors, leading to a slew of price target cuts from analysts worried that Adobe's price-to-free cash flow (P/FCF) ratio of 35 is too lofty, considering its slowing sales growth. Motley Fool contributor Travis Hoium expressed similar sentiments.
However, one analyst at DA Davidson, Gil Luria, thinks otherwise, maintaining his price target of $685. Bolstered by 16% growth in remaining performance obligations (RPO) and unrelenting product innovation courtesy of generative artificial intelligence (AI), Adobe still offers 37% upside, according to Luria.
Source Fool.com
Adobe Inc. Stock
With 45 Buy predictions and 2 Sell predictions Adobe Inc. is one of the favorites of our community.
As a result the target price of 590 € shows a positive potential of 29.61% compared to the current price of 455.2 € for Adobe Inc..
