Sheryar Siddiq
2 min read
In This Article:
Adobe Inc. (NASDAQ:ADBE) shares rose 3% on May 16 after analyst firm Jefferies maintained its Buy rating for the company's stock with a $590 price target. Following the announcement of a price increase for its Creative Cloud All Apps plans, which will take effect on June 17 or upon subscription renewal, analyst Brent Thill expressed confidence in Adobe's financial outlook.
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Leading software development company Adobe Inc. (NASDAQ:ADBE) is renowned for its state-of-the-art digital media solutions. Its primary products, which include Creative Cloud, are essential tools for the creative industries and companies worldwide. Following sneak peeks of Creative Cloud updates at Adobe's MAX analyst day last fall, several market analysts say the new tiers should not come as a shock.
More importantly, the change is expected to support Adobe's revenue forecast for fiscal year 2025, which predicts a growth rate of 8.9% at the halfway point, compared to 10.8% growth in fiscal year 2024. Thill stated that the company's revenue projections now seem conservative due to the price increase, which was already included in the FY25 guidance. He also added that the price increase should strengthen Adobe's position in the artificial intelligence market, especially when combined with the company's Firefly plans, which range from $10 to $200 per month.
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