Adobe’s (NASDAQ:ADBE) stock is under pressure due to macro uncertainty, currency headwinds, and fear of dilution from the Figma deal. Despite challenges, ADBE reiterated its Q4 guidance, which is encouraging. However, near-term headwinds could continue to limit the upside in Adobe stock.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Notably, the software company reaffirmed its Q4 financial targets at its financial analyst meeting. It expects to deliver adjusted earnings of $3.50 per share on revenues of $4.52 billion. The EPS forecast is in line with analysts’ expectations.
Further, Adobe also provided preliminary Fiscal 2023 guidance. It expects to deliver revenue between $19.1 billion to $19.3 billion. Moreover, adjusted EPS is expected to be in the range of $15.15 to $ 15.45. Analysts expect ADBE to post earnings of $15.52 per share on revenues of $19.85 billion.
ADBE stock gained about 3% during after-hours trade following the guidance update.
While investors cheered Adobe’s outlook, macro weakness impacting demand, adverse currency movement, and competitive headwinds could play spoilsport.
Is Adobe a Buy, Hold, or Sell?
Wall Street analysts are cautiously optimistic about Adobe’s stock, given the uncertain economic environment. ADBE stock has received 12 Buy and 14 Hold recommendations for a Moderate Buy consensus rating. Further, analysts’ average price target of $373.30 implies 27.4% upside potential.
ADBE stock has a positive signal from hedge fund managers, who bought 903.6K shares last quarter. However, insiders sold ADBE stock worth $79.9K. Overall, ADBE stock sports a Neutral Smart Score of seven out of 10 on TipRanks.
