Of 32 analysts covering Adobe stock, 17 have a Buy or Strong Buy rating and the other 15 have Hold ratings. At a share price of around $342.50, the upside potential based on a median price target of $357.50 is about 4.4%. At the high target of $475.00, the upside potential is almost 39%.
Fiscal fourth-quarter revenue is forecast at $4.26 billion, up 2.2% sequentially and by 9.0% year over year. Adjusted EPS are forecast at $3.50, up 3.1% sequentially and 9.4% higher year over year. For the full 2022 fiscal year that ended in November, analysts are forecasting EPS of $13.63, up 9.2%, on sales of $17.61 billion, up 11.6%.
Adobe stock trades at 25.1 times expected 2022 EPS, 22.3 times estimated 2023 earnings of $15.35 and 19.3 times estimated 2024 earnings of $17.70 per share. The stock’s 52-week range is $274.73 to $636.00. Adobe does not pay a dividend. Total shareholder return for the past year was negative 48%.
Darden Restaurants
Darden Restaurants Inc. (NYSE: DRI), the owner and operator of more than 1,800 restaurant locations, including Olive Garden and Longhorn Steakhouse, will report second-quarter fiscal 2023 results Friday morning. Over the past 12 months, Darden stock has declined by about 1.9%. The stock’s 52-week high was posted in early January, and shares did not approach that level again until about two weeks ago.
The company’s ability to raise prices to cope with rising costs has been strong but may weaken if demand for dining out declines. And analysts have lowered their EPS estimates for the year by about 8.3%, giving the restaurateurs an easier target.
Of 30 analysts covering Darden, 19 have a Buy or Strong Buy rating and the other 11 rate the stock at Hold. At a share price of around $145.00, the stock trades right at its median price target. At the high price target of $160.00, the upside potential is 10.3%.
Second-quarter revenue is forecast at $2.43 billion, down 0.7% sequentially but up 7.0% year over year. Adjusted EPS are forecast at $1.44, down 6.0% sequentially and by 2.7% year over year. For the full 2023 fiscal year that ends in May, current estimates call for EPS of $7.74, up 4.8%, on sales of $10.32 billion, up 7.2%.
Darden stock trades at 18.7 times expected 2023 EPS, 16.8 times estimated 2024 earnings of $8.64 and 15.1 times estimated 2025 earnings of $9.60 per share. The stock’s 52-week range is $110.96 to $155.25. Darden pays an annual dividend of $4.84 (yield of 3.35%). Total shareholder return for the past year was 1.7%.
Originally published at 24/7 Wall St.
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