Analysts Just Revised Their Ratings for These 5 Companies

1. Adobe Inc. (NASDAQ:ADBE)

Number of Hedge Fund Holders: 93

Morgan Stanley downgraded Adobe Inc. (NASDAQ:ADBE) from “Overweight” to “Equal Weight” on Tuesday, June 21, 2022. The research firm also trimmed its price target for the software company from $591 per share to $362 per share.

Morgan Stanley analyst Keith Weiss expressed concerns over the growth prospects of Adobe Inc. (NASDAQ:ADBE). Moving forward, Weiss expects Adobe’s growth to be weaker. He anticipates an annual growth of 12 percent in the company’s earnings and sales through 2024.

Investment management firm Polen Global Growth Fund also mentioned Adobe Inc. (NASDAQ:ADBE) in its first-quarter 2022 investor letter published last month. The fund said:

“Adobe is a prime example of the COVID-19 air pocket. Adobe continues to compound capital at high rates and exhibit increasing returns to scale. In the case of Adobe, reported growth appears to have decelerated significantly. However, when accounting for foreign exchange impacts and for their fiscal year 2021 having 53 weeks, the adjusted revenue growth was 17% year over year, which is fully in line with their typical growth rates. The 53rd week of the fiscal year 2021 added $267m to total revenue, creating an eight-percentage point difference in reported and adjusted revenue growth. We applaud management’s recent roll- out of Creative Cloud Express to tap into the non-professional market, as well as increasing price in 2022, which we expect to materialize in the back half of the year.”

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