4 Adobe Analysts On Q4 Earnings: 'The Creator Economy Remains Healthy'

Shares of Adobe Inc ADBE were surging Thursday after the company reported upbeat fourth-quarter earnings. Here's what the Street has to say. 

Piper Sandler On Adobe

Analyst Brent Bracelin maintained an Overweight rating and $415 price target.

“Despite a challenging backdrop, we were encouraged by solid Q1 results that suggest the creator economy remains healthy, punctuated by a $32M top-line beat with $0.12 of EPS upside,” Bracelin wrote in a note.

“RPO growth improved to 13% y/y (ex-FX) from 12% last quarter, signaling an improving end demand environment for a broad and diversified product offering with noteworthy transformational deals and customer wins at Accenture, Paramount, Costco, and IBM,” he added.

JMP Securities On Adobe

Analyst Patrick Walravens reaffirmed a Market Outperform rating.

Adobe’s results showcased strong execution for the second consecutive quarter, Walravens said. The company reported “F1Q23 non-GAAP EPS of $3.80 (consensus $3.68) on revenue of $4.66B, up 9% y/y (13% cc) compared to 10% growth last quarter (14% cc),” he added.

RBC Capital Markets On Adobe

Analyst Matthew Swanson reiterated an Outperform rating and $395 price target.

Adobe’s results were healthy, with revenue growth flowing through to strength in both operating margins and earnings, Walravens said. “Management highlighted its strong start to the year noting Creative Cloud, Document Cloud and Experience Cloud are mission-critical in fueling the global digital economy,” he added.

Check out other analyst stock ratings.

Oppenheimer On Adobe

Analyst Brian Schwartz maintained a Perform rating.

Adobe was able to beat expectations, albeit set at a low bar, “as management did a good job navigating a challenging macro,” Schwartz said in a note.

The company raised its fiscal 2023 ARR and EPS outlook, “saw good Document Cloud momentum, and issued strong commentary on the consumer and Digital Experience businesses resiliency,” he added.

Although uncertainty remains, “management is being prudent in setting achievable financial targets, which is leading to better quarterly execution,” the analyst stated.

Stifel On Adobe

Analyst Parker Lane reiterated a Buy rating and $400 price target.

“The company attributed the quarterly strength and improved outlook to the broadness of its platform across CC, DC, and EC, and the variety of end-markets and user-types that leverage its solutions,” Lane said.

“The company noted that it has completed the discovery phase of the DOJ second request and is prepared for the next steps,” the analyst said. "Management expects the deal will close by the end of 2023, but we expect multiple regulatory developments along the way."

BMO Capital Markets On Adobe

Analyst Keith Bachman reaffirmed a Market Perform rating while raising the price target from $395 to $400.

“Adobe both beat and raised, and we think this should provide near-term confidence in demand/execution,” Bachman wrote in a note. “Our longer-term Adobe concerns remain in-tact however, especially given the deal risk of Figma,” he added.

“We think Adobe is better off with Figma in the long run and uncertainty around deal close likely limits multiple expansion to some extent.”  

ADBE Price Action: Shares of Adobe were trading 4.37% higher at $348.20 Thursday morning.