Adobe offers its products and services directly to enterprise customers through its sales force and local field offices, as well as to end users through app stores and through its website. It also distributes products and services through a network of distributors, value-added resellers, systems integrators, software vendors and developers, retailers and original equipment manufacturers.
The Goldman Sachs price target for Adobe stock is $475. The consensus target is lower at $370.77, and the shares ended last week trading at $341.53. Hitting the Goldman Sachs target would be a large 40% gain.
Bumble
While not as well known as some of the stocks on the list, this is another that may be poised to burst higher next year. Bumble Inc. (NASDAQ: BMBL) provides online dating and social networking platforms in North America, Europe and elsewhere.
The company owns and operates websites and applications that offer subscription and in-app purchases dating products. The company operates two apps, Bumble and Badoo, with approximately 40 million users on a monthly basis, as well as Fruitz, an online dating app.
The company posted very solid earnings per share that beat expectations, and it has been outperforming the competition in a big way. Revenue was up 16% from the third quarter of 2021, while net income of $18.1 million was strong, compared with a loss in the same quarter of last year. In addition, profit margins were up 7.8% versus the losing quarter.
Goldman Sachs has a $30 target price, and the consensus target for Bumble stock is $25.31. Friday’s closing print was $24.80 per share.
RingCentral
Some feel this smaller cap company could be a great takeover target. RingCentral Inc. (NYSE: RNG) offers a cloud-based solution for business communications that replaces legacy and expensive on-premise communications systems. It is delivered as an application that follows the user regardless of device (office phone, smartphone, desktop, tablet). Features include voice, text, fax, audio conferencing and integration with document and customer relationship management systems.
RingCentral has separated itself as the leader in the unified communications as a service market, competing in an over $5 billion global total addressable market that is only about 10% penetrated. It has consistently grown revenue over 30% while generating healthy and growing margins. The pandemic likely has accelerated the decision to move from on-premise to cloud for many businesses, including large enterprises that typically take longer to transition. While competition has increased, particularly from Microsoft and Zoom, RingCentral has put in place a robust distribution network that positions it well to capitalize on the rapid shift to the cloud.
The $70 Goldman Sachs price target is well above the $54.12 consensus target and the $38.28 closing price on Friday. Investors could pocket close to a 90% gain if RingCentral stock hits the target.
Salesforce
This is another high-profile software leader whose stock has been absolutely scorched this year. Salesforce Inc. (NYSE: CRM) provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers.
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