CMB International Securities analyst Saiyi He has maintained their bullish stance on ADBE stock, giving a Buy rating yesterday.
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Saiyi He has given his Buy rating due to a combination of factors that highlight Adobe’s strong financial performance and strategic initiatives. Adobe’s 4QFY25 results showed a 10% year-over-year increase in total revenue and an 8% rise in non-GAAP net income, aligning with Bloomberg’s consensus estimates. The company’s focus on integrating AI into its solutions has resulted in AI-influenced annual recurring revenue (ARR) exceeding one-third of its overall business, indicating a significant growth driver.
Looking forward, Adobe’s management has projected a 9-10% year-over-year increase in total revenue for FY26 and a 10.2% growth in ending ARR. Despite a slight reduction in earnings forecasts due to increased operational expenses related to marketing and AI development, the strategic investments in AI and marketing are expected to bolster long-term growth. Additionally, Adobe’s robust digital media and experience segments, along with its recent acquisition of Semrush, further strengthen its market position and support the Buy rating.
According to TipRanks, He is a 5-star analyst with an average return of 14.4% and a 59.39% success rate. He covers the Communication Services sector, focusing on stocks such as Baidu, Tencent Holdings , and Iqiyi.