Adobe benefited from new AI tools and raised subscription prices.
Dreamstime
Shares of software maker Adobe were falling early Friday after the company beat Wall Street’s expectations for both earnings and guidance.
Adobe (ticker: ADBE) Chief Financial Officer Dan Durn said in an interview with Barron’s that it was “a blowout quarter.” The company earlier this year launched its Firefly suite of tools that harness artificial intelligence, and that’s starting to pay off. It also managed to raise subscription prices.
So what’s not to love? D.A. Davidson analyst Gil Luria noted that Adobe is executing on all fronts, but he kept his Neutral rating on the stock with a price target of $500. Shares slipped 1.7% in premarket trading Friday to $543 after closing down Thursday.
“The near-term upside is largely captured in the current stock price,” Luria wrote. Shares have gained 84% over the past year.
Other analysts are still bullish. RBC Capital Markets gives the shares an Outperform rating with a $615 price target. Evercore ISI’s price target is $590.
Write to Brian Swint at [email protected]
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