Adobe price target raised to $380 from $365 at JPMorgan

JPMorgan analyst Mark Murphy raised the firm’s price target on Adobe to $380 from $365 and keeps a Neutral rating on the shares. The company reported a "fairly healthy" fiscal Q1, driven by stable execution, ongoing health in the core drivers of the business, and some pricing tailwinds, the analyst tells investors in a research note. However, Adobe’s commentary that investors should expect a "pretty dramatic cash tax step-up" initially due to regulation changes around capitalization of R&D, has led the firm to cut free cash flow numbers for fiscal 2023. It believes consensus estimates do not fully reflect the potential negative impact of this change currently.