Morgan Stanley Lowers Adobe (NASDAQ:ADBE) Price Target to $365.00

Adobe (NASDAQ:ADBE) had its target price decreased by Morgan Stanley from $425.00 to $365.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has an “equal weight” rating on the software company’s stock. Morgan Stanley’s price target would suggest a potential upside of 43.53% from the company’s current price.

Several other equities research analysts also recently weighed in on ADBE. Jefferies Financial Group dropped their target price on shares of Adobe from $400.00 to $290.00 and set a “hold” rating for the company in a research report on Monday, February 23rd. Barclays reaffirmed an “equal weight” rating and set a $275.00 price target (down from $335.00) on shares of Adobe in a research report on Friday. Sanford C. Bernstein set a $447.00 price target on Adobe and gave the stock an “outperform” rating in a research note on Friday. Robert W. Baird set a $350.00 price objective on Adobe in a research note on Wednesday, January 14th. Finally, Wells Fargo & Company reduced their target price on Adobe from $420.00 to $405.00 and set an “overweight” rating on the stock in a report on Monday. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, eleven have assigned a Hold rating and five have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $346.96.

Adobe Stock Down 5.7%

Shares of Adobe stock traded down $15.48 on Friday, hitting $254.30. 7,388,223 shares of the company’s stock traded hands, compared to its average volume of 5,622,554. Adobe has a 52-week low of $244.28 and a 52-week high of $422.95. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 0.53. The stock has a market cap of $104.39 billion, a P/E ratio of 15.16, a PEG ratio of 1.08 and a beta of 1.53. The firm’s 50-day moving average is $285.56 and its 200 day moving average is $324.01.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.87 by $0.19. The business had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. Adobe had a net margin of 30.00% and a return on equity of 61.28%. The business’s revenue was up 12.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $5.08 earnings per share. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. Equities analysts anticipate that Adobe will post 16.65 earnings per share for the current year.

Insider Buying and Selling at Adobe

In related news, CFO Daniel Durn sold 1,646 shares of the stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the sale, the chief financial officer owned 41,995 shares in the company, valued at $12,382,225.75. This represents a 3.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Adobe

A number of hedge funds and other institutional investors have recently bought and sold shares of ADBE. LSV Asset Management raised its position in shares of Adobe by 350.0% during the 2nd quarter. LSV Asset Management now owns 72 shares of the software company’s stock worth $28,000 after purchasing an additional 56 shares during the period. Measured Wealth Private Client Group LLC acquired a new position in Adobe during the 3rd quarter valued at approximately $26,000. Western Pacific Wealth Management LP bought a new position in Adobe during the 4th quarter worth $26,000. Caitlin John LLC bought a new position in Adobe during the 3rd quarter valued at $28,000. Finally, Beacon Financial Strategies CORP acquired a new position in shares of Adobe during the 4th quarter valued at $28,000. 81.79% of the stock is currently owned by institutional investors and hedge funds.

Adobe News Summary

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Adobe reported record Q1 results: revenue and EPS topped expectations and the company said AI?first annualized recurring revenue more than tripled year?over?year, evidence that AI products are driving adoption. Adobe Delivers Record Q1 Results
• Positive Sentiment: Adobe emphasized continued product momentum and has been repurchasing stock, signaling management confidence in the balance sheet and long?term cash returns to shareholders. Adobe’s Revenue Accelerates. Is It Time to Buy This?
• Neutral Sentiment: Management issued FY?2026 and Q2 guidance that market participants are parsing for evidence of AI monetization; some see guidance as adequate, others view the tone as cautious amid sector volatility. Adobe Q1 earnings and guidance (MarketBeat)
• Negative Sentiment: CEO Shantanu Narayen said he will transition from the CEO role once a successor is named; investors are unsettled by leadership uncertainty at a pivotal moment for Adobe’s AI strategy. Shantanu Narayen Announces Decision to Transition as Adobe’s CEO
• Negative Sentiment: The market reaction has been sharp: shares are down after hours/premarket as traders price in succession risk and renewed AI?disruption concerns that have pressured software valuations. Adobe shares drop after CEO exit adds to AI?disruption concerns (Reuters)
• Negative Sentiment: Adobe agreed to pay $75 million to resolve a U.S. lawsuit over subscription cancellation fees — modest vs. Adobe’s market cap but another near?term headline and cash outflow. Adobe to pay $75M to resolve US lawsuit (Reuters)
• Negative Sentiment: Several analysts trimmed price targets or issued cautious notes after the report and leadership news, adding downward pressure until clarity on succession and AI monetization emerges. TD Cowen Lowers PT on Adobe

About Adobe

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company’s core offerings are organized around digital media and digital experience.