CMB International Securities analyst Saiyi He has maintained their bullish stance on ADBE stock, giving a Buy rating on March 13.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Adobe’s strong financial performance and strategic initiatives. Adobe’s 1QFY25 results showed a significant revenue increase of 11% year-over-year, reaching $5.71 billion, and a 9% rise in non-GAAP net income, aligning with market expectations. The company’s focus on AI-driven products, such as Acrobat AI Assistant and Firefly App, has not only contributed to a growing annual recurring revenue but also enhanced user adoption and upselling of core offerings.
Furthermore, Adobe’s customer-focused strategy and innovation are expected to drive long-term growth, with a notable increase in subscription revenue across different user groups. The company’s commitment to share repurchase, supported by strong cash flow, indicates confidence in its valuation and future prospects. These elements combined reinforce Saiyi He’s positive outlook on Adobe, justifying the Buy rating.
In another report released on March 13, Barclays also maintained a Buy rating on the stock with a $567.00 price target.