Piper Sandler Downgrades Three Software Stocks Amid Sector Pessimism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Should l Buy ADBE?
Source: seekingalpha
- Rating Downgrade: Piper Sandler downgraded Adobe, Freshworks, and Vertex from Overweight to Neutral, cutting their price targets from $479, $20, and $32 to $330, $12, and $20 respectively, reflecting ongoing pessimism in the software sector.
- Growth Slowdown Forecast: Analysts predict that 2026 will mark the fifth consecutive year of decelerating growth rates for software, citing AI efficiencies as a pressure on headcount growth, which poses significant challenges for software companies that sell on a per-seat basis.
- Price Target Adjustments: In addition to the three companies, Piper Sandler also lowered price targets for several others including Amplitude and Asana, indicating a cautious outlook for the entire software industry amid continued investor apathy.
- Future Outlook: Despite the negative sentiment surrounding software, analysts remain bullish on Microsoft and ServiceTitan, viewing Microsoft as a top play on AI adoption and highlighting ServiceTitan's multiple growth drivers as potential revenue upside in FY27.
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Analyst Views on ADBE
Wall Street analysts forecast ADBE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADBE is 454.52 USD with a low forecast of 310.00 USD and a high forecast of 660.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
17 Buy
6 Hold
1 Sell
Moderate Buy
Current: 268.380
Low
310.00
Averages
454.52
High
660.00
Current: 268.380
Low
310.00
Averages
454.52
High
660.00
About ADBE
Adobe Inc. is a global technology company. The Company's products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. Its segments include Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment is centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop and other products, offering a variety of tools for creative professionals, communicators and other consumers. The Digital Experience segment provides an integrated platform and set of products, services and solutions through Adobe Experience Cloud. The Publishing and Advertising segment contains legacy products and services. In addition, its Adobe GenStudio solution allows businesses to simplify their content supply chain process with generative artificial intelligence (AI) capabilities and intelligent automation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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