Analysts rate Adobe Systems Incorporated (ADBE:NSD) with a Strong Buy rating and a $506.02 target

STA Research
by: STA Research
Adobe Systems Incorporated

Based on the Adobe Systems Incorporated ADBE stock forecast from 25 analysts, the average analyst target price for Adobe stock is USD 506.02 over the next 12 months. Adobe stock’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Adobe Systems Incorporated is Slightly Bullish, which is based on 9 positive signals and 4 negative signals. At the last closing, ADBE target price was USD 368.14. ADBE stock price has changed by -12.88% over the past week, -41.82% over the past month and -44.77% over the last year.

About Adobe Systems Incorporated (ADBE:NSD)

Worldwide, Adobe Inc. operates as a diverse software corporation. Digital Media, Digital Experience, and Publishing and Advertising make up its three operating segments. In October 2018, the business changed its name from Adobe Systems Incorporated to Adobe Inc. Incorporated in 1982, Adobe Inc. has its corporate headquarters in San Jose, California. the following address: 345 Park Avenue, San Jose, California, 95110-2704

 

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior risk-adjusted returns

Adobe stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior return on equity

The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

Adobe stock had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

Adobe stock has shown top quartile earnings growth compared to its sector in the previous 5 years.

High Gross Profit to Asset Ratio

Adobe stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price-to-earnings basis and is above the sector median.

Overpriced compared to book value

Adobe stock is trading high compared to its peers median on a price-to-book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price-to-cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Overpriced on a free cash flow basis

Adobe stock is trading high compared to its peers on a price-to-cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

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