Adobe Shares Dip After-Hours On Soft Guidance — But Analyst Foresees 'Meaningful Upside' In 2024 On Generative AI Momentum
Portfolio Pulse from Shanthi Rexaline
Adobe Inc. (NASDAQ:ADBE) shares fell 5% in after-hours trading following the release of its fiscal year 2024 guidance, which was perceived as weak. Despite this, Piper Sandler analyst Brent Bracelin maintained an Overweight rating on the stock with a $650 price target, citing strong Q4 results, consistent currency-neutral growth, and potential benefits from recent price increases and generative AI innovations. Adobe's stock had previously outperformed the S&P 500 with an 86% year-to-date climb compared to the index's 23% gain.
December 14, 2023 | 6:31 am
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NEUTRAL IMPACT
Adobe's after-hours stock price dropped due to disappointing FY2024 guidance, but Piper Sandler's analyst sees potential upside from AI innovations and recent price increases.
The short-term impact on Adobe's stock price is likely to be neutral. While the soft guidance for FY2024 has led to a negative after-hours reaction, the analyst's positive outlook based on strong Q4 performance and future growth drivers such as AI and pricing strategies could counterbalance the initial drop. The stock's previous strong performance may also cushion the impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100