Analysts Set $402.85 Average Target as Major Holders Trim Adobe Stakes
28 brokerages rate Adobe shares at consensus Hold with average 1-year price target of $402.85 as Morgan Stanley cut its target to $425 and Stifel to $450 while UBS maintained $487. Institutional investors saw Harel reduce its stake 5.3% and First National Advisors sell 73.8%, leaving it with 3,028 shares.
1. Consensus Analyst Ratings and Price Targets
Twenty-eight brokerages cover Adobe. Four rate the stock as a sell, twelve as a hold, eleven as a buy and one as a strong buy, for a consensus rating of Hold. Over the past year, analysts’ average 12-month target stands at $402.85, with recent revisions including Morgan Stanley lowering its target to $425 and Stifel Nicolaus to $450 before UBS set its target at $487.
2. Strong Q4 Results and Guidance Reinforce Growth Trajectory
In Q4 FY2025 Adobe reported non-GAAP EPS of $5.50, exceeding the consensus estimate of $5.40, on revenue of $6.19 billion versus estimates of $6.11 billion. Revenue grew 10.5% year-over-year, while net margin reached 30.0% and return on equity hit 61.3%. Management guided Q1 FY2026 EPS to a range of $5.85–$5.90 and full-year FY2026 EPS to $23.30–$23.50, reflecting confidence in continued double-digit annual recurring revenue expansion.
3. Significant Institutional Backing and Insider Activity
Institutional investors hold 81.8% of shares. In Q3, Norges Bank initiated a $2.03 billion position, Arrowstreet Capital increased its stake by 53.3% to 5.62 million shares (valued at $1.98 billion), Dodge & Cox boosted holdings by over 8,000% to 1.59 million shares ($562 million) and Franklin Resources raised its stake by 68.9% to 1.94 million shares ($750 million). Insiders own 0.16%; Chief Accounting Officer Jillian Forusz sold 149 shares for $50,344, trimming her position by 4.17%.