Adobe’s Strategic Pricing Changes Poised to Boost Financial Performance and Market Share

Morgan Stanley analyst Keith Weiss maintained a Buy rating on Adobe (ADBE – Research Report) today and set a price target of $510.00.

Keith Weiss’s rating is based on Adobe’s recent pricing changes for its Creative Cloud All Apps, which are expected to positively impact the company’s financial performance in the coming years. Although the pricing adjustments are already factored into the fiscal year 2025 guidance, they are anticipated to drive stronger growth in fiscal year 2026 as the changes extend to additional geographies and plans.
Weiss highlights that the dual strategy of increasing prices for high-end plans while maintaining competitive pricing for standard plans positions Adobe well in a crowded market. This approach is expected to bolster Adobe’s market share and support a return to mid-teens earnings per share compound annual growth rate (EPS CAGR). The stock’s current valuation, trading at a lower price-to-earnings growth (PEG) ratio compared to large-cap peers, further supports the Buy rating.

In another report released on May 16, Barclays also maintained a Buy rating on the stock with a $567.00 price target.