Barclays analyst Saket Kalia has maintained their bullish stance on ADBE stock, giving a Buy rating today.
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Saket Kalia has given his Buy rating due to a combination of factors related to Adobe’s strategic pricing adjustments and product enhancements. Adobe’s introduction of new pricing tiers for its Creative Cloud offerings, specifically the Pro and Standard tiers, is a significant factor. The Pro tier represents a 17-18% price increase, while the Standard tier offers an 8-9% discount compared to the current Creative Cloud All Apps Plan for individuals. These changes are expected to enhance Adobe’s revenue streams and are already factored into the company’s FY25 ARR guidance.
Furthermore, the new pricing structure is not unexpected, as Adobe’s management had been signaling these changes since the previous fall. The announcement aligns with Adobe’s broader strategy to enhance its product offerings, including greater access to mobile and web apps and premium generative features. These strategic moves are anticipated to strengthen Adobe’s market position and drive future growth, supporting the Buy rating from Saket Kalia.
According to TipRanks, Kalia is a 5-star analyst with an average return of 15.0% and a 62.37% success rate. Kalia covers the Technology sector, focusing on stocks such as Autodesk, Adobe, and CCC Intelligent Solutions Holdings.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $590.00 price target.