Bull Notes Galore for Adobe After Earnings Beat
This is pacing to be ADBE's highest close since April
The shares of Adobe Inc (NASDAQ:ADBE) are up 3.3% to trade at $285.59 this morning, after the software name reported an adjusted fiscal second-quarter earnings beat of $1.83 per share. Adobe also reported quarterly revenue of $2.74 billion, surpassing the $2.70 billion estimate, with the company attributing the blowout report to growth in its digital media business. What's more, despite Adobe issuing weaker-than-expected current-quarter sales guidance, ADBE stock has seen an avalanche of bull notes.
No fewer than 11 brokerages have come forward with price-target hikes, the highest coming from Jefferies (to $340 from $325). Baird waxed optimistic about Adobe's artificial intelligence game, hiking its target to $325 from $300, and Canaccord Genuity called the earnings showing "boringly excellent," lifting its price target to $320 from $300.
On the charts, this is pacing to be Adobe stock's highest close since April 30 -- a day after the shares' all-time high of $291.71. Today's rally also takes ADBE past the $284-$285 region, an area that has served as a stiff ceiling in recent week. Year-to-date, the equity is now up roughly 27%.
Despite the flurry of analyst attention today, there is still room for more, which could drive the shares higher in the short term. Of the 21 brokerages covering ADBE, 10 still rate it a tepid "hold."