Adobe Inc. (NASDAQ:ADBE) is one of AI Stocks on Market Radar. On December 5, Barclays lowered its price target on the stock from $465 to $415, while maintaining an “overweight” rating. The price target drop comes ahead of the company’s fourth-quarter fiscal 2025 results, scheduled for release on Dec. 10.
Although Barclays remains optimistic about the stock, driven by ARR momentum and Semrush’s rise, it remains cautious in the short term while awaiting clarity on guidance.
Analysts are modeling $571 million in NN DM ARR’s latest quarter disclosure, with a potential upside scenario of $600 million to $610 million based on decent web traffic.
The company’s total ARR could reach approximately $25.8 billion by the end of fiscal 2025, representing year-over-year growth of approximately 11.5%. This growth exceeds the company’s initial forecast of around 11% at the start of the year.
Given that Semrush is expected to close in the first half of FY26, it is unlikely to be included in the company’s FY26 guidance. However, using consensus estimates for Semrush and assuming an April 1 close, this means the deal could potentially add 1-2 points of revenue growth for FY26 and be roughly neutral to positive for earnings per share.
Finally, the company discussed the quarter-over-quarter increase in Express mobile app downloads. However, he doesn’t expect the company to offer an update to its artificial intelligence ARR metric after last quarter’s strong performance.
Adobe Inc. (NASDAQ: ADBE) is a software company that provides digital marketing and media solutions.
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