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Opportunity in This Wide-Moat Software Firm

Top performer Adobe looks undervalued as it's poised to grow its top line next year.


Billy Fitzsimmons: We recently took a fresh look at Adobe and maintained our wide moat, stable trend rating, and we raised our fair value estimate to $300 per share. Adobe has been a top performer in recent years, but we believe the recent sell-off across enterprise software in the last month makes this an attractive point of entry for this 4-star name set to grow its top line at 20%-plus next fiscal year.

As a reminder, Adobe has a few key segments, with the two largest being Digital Media and Digital Experience.

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William Fitzsimmons does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.