Adobe, Inc. (NASDAQ: ADBE) plans to launch a free version of Photoshop on the web soon to attract users, a report published by The Verge said.
Currently, the company is testing its free version in Canada, where users can create a free Adobe account to access Photoshop on the web. Eventually, it plans to make some features available only to paid subscribers.
Adobe’s VP of Digital Imaging Maria Yap said, “We want to make [Photoshop] more accessible and easier for more people to try it out and experience the product.”
Meanwhile, the California-based company plans to add a Neural Filter to Photoshop proper. The AI-powered filter can clean up the scratches and restore some color to a yellowed photo. The filter can also be used with Adobe’s existing colorize filter to brighten up an old photo.
Q2 Expectations
Adobe is scheduled to release its second-quarter results on June 16. Analysts expect the company to report earnings of $3.31 per share.
According to FactSet, sales are expected to total $4.34 billion for the quarter.
Wall Street’s Take
Ahead of the company’s second-quarter results, Deutsche Bank (NYSE: DB) analyst Brad Zelnick has maintained a Buy rating on the stock with a price target of $575 (55.1% upside potential).
Zelnick said, “We don’t believe any software company is immune to macro deceleration, though we do believe Adobe should fare better than most given its leverage to a more digital future, consistent innovation, pricing power, solid execution, and category leadership.”
Overall, the stock has a Strong Buy consensus rating based on 21 Buys and five Holds. ADBE’s average price target of $549.04 implies 48.1% upside potential from current levels. Shares have lost 32.4% over the past year.
Conclusion
With the introduction of a free version of Photoshop on the web, Adobe plans to attract more users by making the app more accessible. This will help the company convert free users to paid subscribers.
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