Adobe (NASDAQ:ADBE) Given New $365.00 Price Target at Morgan Stanley

Adobe (NASDAQ:ADBE) had its price target reduced by Morgan Stanley from $425.00 to $365.00 in a research note published on Friday,Benzinga reports. They currently have an equal weight rating on the software company’s stock.

A number of other equities analysts also recently weighed in on the stock. Weiss Ratings downgraded shares of Adobe from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, March 6th. Mizuho cut their price target on shares of Adobe from $340.00 to $315.00 and set an “outperform” rating on the stock in a research report on Friday. The Goldman Sachs Group set a $220.00 price target on Adobe and gave the stock a “sell” rating in a report on Friday. Robert W. Baird set a $350.00 price objective on Adobe in a research note on Wednesday, January 14th. Finally, Stifel Nicolaus cut their target price on Adobe from $450.00 to $400.00 and set a “buy” rating on the stock in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, twelve have issued a Hold rating and five have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $347.85.

Adobe Stock Performance

Shares of ADBE stock opened at $249.32 on Friday. The stock has a market capitalization of $102.35 billion, a PE ratio of 14.52, a PEG ratio of 1.06 and a beta of 1.53. The business’s 50 day simple moving average is $283.88 and its 200 day simple moving average is $323.22. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.00 and a quick ratio of 1.00. Adobe has a one year low of $244.28 and a one year high of $422.95.

Adobe (NASDAQ:ADBE) last released its quarterly earnings results on Thursday, March 12th. The software company reported $6.06 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.87 by $0.19. The firm had revenue of $6.40 billion during the quarter, compared to analyst estimates of $6.28 billion. Adobe had a net margin of 29.48% and a return on equity of 64.23%. The company’s revenue was up 12.0% compared to the same quarter last year. During the same quarter last year, the business earned $5.08 EPS. Adobe has set its FY 2026 guidance at 23.300-23.500 EPS and its Q2 2026 guidance at 5.800-5.850 EPS. As a group, research analysts forecast that Adobe will post 16.65 earnings per share for the current year.

Insider Buying and Selling at Adobe

In other news, CFO Daniel Durn sold 1,646 shares of the company’s stock in a transaction dated Tuesday, January 27th. The shares were sold at an average price of $294.85, for a total transaction of $485,323.10. Following the transaction, the chief financial officer owned 41,995 shares in the company, valued at approximately $12,382,225.75. This represents a 3.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.20% of the company’s stock.

Institutional Trading of Adobe

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Brighton Jones LLC grew its stake in Adobe by 2.1% in the fourth quarter. Brighton Jones LLC now owns 8,068 shares of the software company’s stock valued at $3,588,000 after acquiring an additional 167 shares during the period. Sivia Capital Partners LLC raised its position in shares of Adobe by 25.5% during the second quarter. Sivia Capital Partners LLC now owns 2,394 shares of the software company’s stock worth $926,000 after purchasing an additional 486 shares during the period. United Bank raised its position in shares of Adobe by 12.8% during the second quarter. United Bank now owns 3,773 shares of the software company’s stock worth $1,460,000 after purchasing an additional 428 shares during the period. Schnieders Capital Management LLC. lifted its holdings in shares of Adobe by 7.8% in the 2nd quarter. Schnieders Capital Management LLC. now owns 2,630 shares of the software company’s stock worth $1,017,000 after purchasing an additional 190 shares in the last quarter. Finally, Nwam LLC lifted its holdings in shares of Adobe by 6.8% in the 2nd quarter. Nwam LLC now owns 630 shares of the software company’s stock worth $233,000 after purchasing an additional 40 shares in the last quarter. 81.79% of the stock is owned by institutional investors.

Key Stories Impacting Adobe

Here are the key news stories impacting Adobe this week:

• Positive Sentiment: Record Q1 results and AI traction — Adobe posted above‑consensus Q1 revenue and EPS and highlighted rapid AI-first ARR growth; management framed the quarter as an AI‑led acceleration, which supports the company’s long‑term revenue mix and margins. Adobe Delivers Record Q1 Results
• Neutral Sentiment: Guidance shows upside but raises questions — Adobe’s FY26 EPS range and Q2 outlook exceeded consensus, yet investors parsed the details (ARR cadence, freemium strategy) for sustainability before rewarding the stock. Adobe Q1 earnings & guidance
• Neutral Sentiment: Short‑interest figures reported inconsistently — publicly posted short data showed anomalous/zero values (NaN/0), so current short‑squeeze risk or bearish positioning is unclear.
• Negative Sentiment: DOJ settlement adds immediate cost and reputational overhang — Adobe agreed to a $150M package (roughly $75M cash + $75M in free services) to resolve claims about hard‑to‑cancel subscriptions, creating a headline liability and consumer‑facing remediation burden. Adobe agrees to pay $150 million to resolve alleged violations
• Negative Sentiment: CEO succession uncertainty — Shantanu Narayen announced he will step down once a successor is named (he will remain board chair), creating near‑term leadership uncertainty at a critical time for Adobe’s AI strategy and execution. Shantanu Narayen Announces Decision to Transition as Adobe’s CEO
• Negative Sentiment: Analyst downgrades and lower targets amplify selling — Several firms cut price targets or moved to neutral/equal‑weight, citing CEO transition and mixed ARR trends, which pressured sentiment and triggered further mark‑downs. These Analysts Cut Their Forecasts On Adobe Following Q1 Earnings

About Adobe

Adobe Inc, founded in 1982 by John Warnock and Charles Geschke and headquartered in San Jose, California, is a global software company that develops tools and services for creative professionals, marketers and enterprises. Under the leadership of CEO Shantanu Narayen, who has led the company since 2007, Adobe has evolved from a provider of desktop publishing tools into a cloud-centric provider of digital media and digital experience solutions.

The company’s core offerings are organized around digital media and digital experience.