Analysts Are Cutting Price Targets Of These 5 Stocks

2. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 94

Adobe Inc. (NASDAQ:ADBE) is a California-based software company that promotes content creation via cloud-based document services and creative products. In Q4 2021, 94 hedge funds were bullish on Adobe Inc. (NASDAQ:ADBE), compared to 95 funds in the prior quarter. The total stakes held by elite funds in Q4 exceeded $10 billion. 

On March 18, Jefferies analyst Brent Thill reduced the price target on Adobe Inc. (NASDAQ:ADBE) to $550 from $680 and kept a Buy rating on the shares ahead of the fiscal Q1 results. According to the analyst, Adobe Inc. (NASDAQ:ADBE) currently faces several near-term headwinds, such as slowing GDP, the strong U.S. currency, the Ukraine-Russia war, and competitors such as Canva. However, he thinks that most of these headwinds have been absorbed by the shares, as is evident from the 22% decline year-to-date.

According to the Q4 database of Insider Monkey, Fisher Asset Management is the biggest shareholder of the company, with 6.7 million shares worth $3.8 billion. 

Here is what Richie Capital Group has to say about Adobe Inc. (NASDAQ:ADBE) in its Q2 2021 investor letter:

“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”