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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.

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