I hope you had a good New Year’s Eve. In any case, I wish you a happy new year. Most likely, you also felt the same way as almost all of my friends and acquaintances: We were glad that the year 2023 was finally over. However, not everything went wrong. This also applies to Adobe. The US company may not be as familiar to you as Coca-Cola or Microsoft. But in our digital everyday life, you can’t get around Adobe anymore.

Indispensable in our digital everyday life, Adobe Inc. develops software specifically for creating, publishing, and visually distributing content. This includes graphic and image editing programs, audio and video editing systems, and web analytics tools. Some of the most well-known products are Photoshop, Acrobat, Flash, and Dreamweaver.

Adobe beats analyst expectations In the fourth quarter, the company achieved earnings per share of $4.27, compared to $3.60 in the previous year. Analysts had expected $4.14. Revenue for the quarter was $5.05 billion, compared to $4.53 billion in the previous year. Analysts surveyed by Capital IQ had expected $5.02 billion.

Future forecast slightly below expectations For the fiscal year 2024, Adobe expects adjusted earnings per share between $17.60 and $18.00 and revenue between $21.30 and $21.50 billion. Analysts surveyed by Capital IQ expect $17.98 and $21.73 billion, respectively.

Strong performance – stock still has potential up to $735 Conclusion: Last year, the stock performed very well with a gain of 78%. Analyst sentiment remains predominantly positive. 25 out of 38 analysts recommend buying, 11 recommend holding, and only 2 analysts consider selling to be sensible. The average analyst price target is $637. The highest analyst price target is $735, which would offer a maximum potential of 23%. With a P/E ratio of 33, Adobe is no longer a bargain, but as the undisputed market leader, the company can afford a higher valuation.