Analysts Stocks

      Selected stock price target news of the day - September 18th, 2023

      By: Matthew Otto

       

      Adobe Meets Earnings Estimates, Plans Price Increases Amid AI Integration

       

      Adobe announced last week its quarterly earnings, meeting or exceeding expectations on multiple fronts. The company reported revenue of $4.89 billion, up 10% year-over-year, slightly ahead of its guidance range and above the Street consensus of $4.87 billion.

      The company’s CFO, Dan Durn, noted that they surpassed the midpoint of their guidance by $40 million and also beat their own operating margin expectation of 45.1% with a 46.3% margin. He stated that this performance was achieved even while incorporating the computing costs associated with their new Firefly suite of AI tools. Since Firefly’s launch, Adobe customers have produced two billion images with these new AI tools, at no extra cost.

      Adobe’s Digital Media segment saw an 11% rise in revenue to $3.59 billion, and its Digital Experience revenue increased by 10% to $1.23 billion. Adobe has also expanded its AI software offerings and outlined its strategy for monetization, including the introduction of an enterprise version of Firefly. Plans were announced to increase prices for various Creative Cloud plans by 8% to 10%, effective November 1, to reflect the costs associated with AI content creation.

      For the next quarter, Adobe projects revenues between $4.975 billion and $5.025 billion and adjusted profits of $4.10 to $4.15 a share. This is in line with Street consensus estimates, which had projected $5 billion in revenue and profits of $4.06 a share. Durn mentioned that the upcoming price increases are expected to gradually impact revenues, particularly benefiting future quarters. Most individual users are on one-year contracts, while enterprise customers typically have three-year agreements.

      Overall, Adobe’s recent performance and future projections indicate that the company is successfully integrating AI technologies into its suite of tools, although this comes with increased costs that will be passed on to the customer.

      Wall Street Weekend Approval

       

      Last Friday

       

      • Deutsche Bank’s Brad Zelnick maintained a Buy rating maintained, increasing the price target from $550 to $610.
      • Barclays’ Saket Kalia held an Equal-Weight and lifted his price target from $620 to $640.
      • Wolfe Research’s Alex Zukin kept an Outperform rating and maintained and hiked the price target from $580 to $650.
      • Wells Fargo’s Michael Turrin continues to rate Adobe as Overweight, adjusting the price target upwards from $625 to $650.
      • Baird’s Rob Oliver maintained  a Neutral position, revising the price target from $500 to $540.
      • B of A Securities’ Brad Sills retains a Buy rating maintained and sets a new price target of $660, up from $630.
      • TD Cowen’s Derrick Wood sustains an Outperform rating and raises the price target from $600 to $630.
      • Evercore ISI Group’s Kirk Materne upheld an Outperform rating maintained, bumping the price target from $590 to $605.
      • Citigroup’s Tyler Radke keeps a Neutral stance maintained  and adjusts the price target from $570 to $610.
      • Mizuho’s Gregg Moskowitz reiterates a Buy rating maintained while maintaining the existing price target of $630.

       

      Analyst Karl Keirstead (UBS) has currently the highest performing score on ADBE with 7/12 (58.33%) price target fulfillment ratio. His price targets carry on average an $50.76 (10.42%) potential upside. Adobe stock price reaches these price targets on average within 116 days.

       

      PTC Therapeutics Faces Setback as European Committee Rejects Full Authorization for Translarna

      PTC Therapeutics announced that a European medical committee gave a negative opinion on fully authorizing their drug, Translarna, for a specific type of muscular dystrophy. Despite initially signaling that they received some form of opinion from the committee, which was to be discussed in a conference call, the ultimate decision was not in their favor. The company plans to challenge this rejection, aiming to convert the drug’s conditional approval to full authorization in the European market.

      Analysts Revise Ratings and Lower Price Targets

       

      • Goldman Sachs’ Paul Choi maintained a Sell rating and slashed the price target from $35 to $22.
      • RBC Capital’s Brian Abrahams held a Sector Perform rating and reduced the price target from $49 to $26.
      • Citigroup’s David Lebovitz downgraded from Buy to Neutral and cut the price target from $55 to $29.
      • Raymond James’ Danielle Brill shifted from an Outperform to an Underperform rating.

       

      Analyst Joseph Thome (COWEN) has currently the highest performing score on PTCT with 5/5 (100%) price target fulfillment ratio. His price targets carry on average an $0.76 (6.89%)

      potential upside. PTC Therapeutics stock price reaches these price targets on average within 66 days.

      Daily stock Analysts Top Price Moves Snapshot