Adobe price target raised by $40 at Jefferies, here’s why

Jefferies raised the firm’s price target on Adobe to $700 from $660 and keeps a Buy rating on the shares. While FY24 guidance disappointed compared to high expectations, Adobe has a history of conservative ARR guidance, notes the analyst, who points out that final actual ARR has beat initial guidance by greater than $200M in two out of the last three fiscal years. FY24 is “well positioned to repeat” this trend and ARR could exceed $2.1B thanks to many drivers tied to Firefly gen AI adoption, the analyst contends.