Adobe Slides 2% After Mizuho Cuts Price Target to $340
Mizuho cut Adobe’s price target to $340 from $390 and maintained an Outperform rating, sending shares down 2% as Adobe trades at roughly 10x 2027 free cash flow. The firm forecasts fiscal Q1 revenue modestly above consensus, net new ARR ahead of expectations and Q1 earnings of 15% growth.
1. Mizuho Price Target Cut
Mizuho lowered Adobe’s price target to $340 from $390 while maintaining an Outperform rating. The brokerage cited weaker valuation multiples among software peers and noted Adobe’s stock trades near 10 times estimated calendar-year 2027 free cash flow.
2. Outlook for Fiscal Q1 and ARR Growth
Mizuho expects Adobe’s fiscal Q1 revenue to come in modestly above consensus estimates and new annual recurring revenue to exceed Wall Street forecasts. The firm also highlighted initial revenue generation from generative AI features and reaffirmed Adobe’s target of roughly 10.2% ARR growth for fiscal 2026 in constant currency.