Evercore ISI Lowers Adobe Rating to Hold
Evercore ISI's Kirk Materne lowers Adobe's rating to hold with a $225 target, a 8.53% upside from the current price.
Key Points
- Evercore ISI Group lowered its rating on Adobe Inc. (NasdaqGS: ADBE) to hold on June 12, 2026, with a price target of $225.
- Evercore ISI Group's $225 price target implies 8.53% upside from Adobe Inc.'s ($ADBE) current $207.32 share price.
- Adobe shares traded at $204.01, with a market cap of $82.5 billion and a P/E ratio of 11.67.
- Analysts from Citigroup to Wells Fargo maintained varied ratings with price targets ranging from $190 to $340.
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Evercore ISI Group has lowered its rating on Adobe Inc. (NasdaqGS: ADBE) to 'hold', with a new price target of $225. This change was announced on June 12, 2026, by analyst Kirk Materne.
Other Institutional Activity in Adobe
Adobe has seen various movements among institutional investors. BlackRock, Inc. increased its holdings by 379,718 shares, ending with 40,809,940 shares worth about $9.92 billion. Meanwhile, Vanguard Capital Management LLC initiated a position with 26,679,971 shares valued at approximately $6.49 billion. State Street Corp reduced its stake by 560,546 shares, leaving it with 19,913,187 shares valued at $4.84 billion. Geode Capital Management, LLC added 195,210 shares, totaling 11,726,888 shares worth roughly $2.85 billion.
Adobe Inc. Stock Down 28.9%
Shares of Adobe Inc. (NasdaqGS: ADBE) recently traded around $204.01. The company boasts a market cap of $82.5 billion and a P/E ratio of 11.67. Adobe's stock has a 52-week range from $196.9 to $405.0, with a 50-day moving average of $244.89 and a 200-day moving average of $298.34. The company has a current ratio of 0.751 and a debt-to-equity ratio of 61.34.
Recent Earnings
Adobe reported revenue of $25.20 billion, reflecting a growth of 12.7%. The company's net margin stands at 28.69%, with a return on equity of 62.95%. Earnings per share were $17.48. Adobe is set to release its next earnings report on September 10, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
17 target cuts vs 0 raises.
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EPS & revenue
EPS met estimates. Revenue beat estimates by 0.5%.
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Profit surprise
EBITDA missed by 26 percent. Operating income missed by 24 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
2 downgrades, 17 target cuts.
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Earnings quality
Operating margin down 2.1 points. Positive free cash flow.
Earnings Call Summary
Adobe reported $6.62 billion in revenue, beating consensus by $33 million, but missed earnings at $5.96 non-GAAP EPS versus expected $5.83. The company is pivoting to a freemium strategy, growing Creative Cloud freemium users from 50 million to 90 million and Acrobat users from 700 million to 850 million. Firefly AI revenue approached $300 million and grew 50 percent quarter over quarter. Management stressed that capturing traffic and user engagement now is more important than short-term profit, similar to how Acrobat Reader became a long-term moat.
Guidance Adobe expects $20.5 billion to $20.6 billion in revenue for the full year, raising its prior target. For next quarter, the company guides to $6.67 billion to $6.72 billion in revenue. The company is investing heavily in freemium products and deferring Creative Cloud price increases to capture new users and build long-term growth.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Insider Buying and Selling at Adobe Inc.
Recent insider activity includes several sales. On April 30, 2026, Jillian Forusz, SVP & CAO, sold 755 shares. Shantanu Narayen, Chair and CEO, sold 75,000 shares on April 28, 2026. Daniel Durn, EVP & CFO, made two sales in April 2026, totaling 3,720 shares. Spencer Adam Neumann bought 1,367 shares on April 15, 2026.
Analysts Set New Price Targets
On June 12, 2026, Citigroup maintained a 'hold' rating with a $228 target. Goldman Sachs kept a 'sell' rating with a $190 target. Jefferies maintained a 'hold' with a $230 target, while JP Morgan reiterated a 'buy' with a $340 target. RBC Capital also held a 'buy' rating with a $285 target. UBS and BMO Capital both maintained 'hold' ratings with targets of $225 and $230, respectively. Wells Fargo continued with a 'buy' and a $250 target. The consensus recommendation for Adobe is a 'buy', with an average target price of about $329.33 from 32 analysts.
About Adobe
Adobe Inc., based in San Jose, California, operates globally as a technology company. It offers a wide range of products and services for digital media creation, management, and marketing. Its offerings cater to photographers, designers, marketers, and more through segments like Digital Media and Digital Experience. Led by CEO Shantanu Narayen, Adobe employs over 31,000 people.
Bottom Line
Evercore ISI's recent downgrade of Adobe reflects a cautious stance amid the company's current market conditions. The stock's recent trading levels, combined with varied analyst opinions, highlight the mixed sentiment surrounding Adobe. Investors often track these analyst ratings to gauge market sentiment, though it's important to remember that these are backward-looking assessments.
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