Barclays Calls Adobe's (ADBE) New Pricing Plan Supportive to Future Growth

On May 16, Barclays analyst Saket Kalia praised Adobe Inc.’s (NASDAQ:ADBE) new pricing tiers for its Creative Cloud offerings. He believes that such pricing prudence should improve Adobe’s future growth. As per his analysis, the Pro tier represents a 17%-18% price increase for this offering, and on the other hand, the Standard tier offers an 8-9% discount versus its current plan for individuals. While this change supports Adobe’s future revenue growth, Saket notes that this is already factored into the company’s FY 2025 guidance. He also points out that the street was expecting such pricing structure changes, as the management had hinted at it for some time. Factoring in those facts, Saket’s note reinforces his confidence in the stock, as he rightly reiterated his Buy rating.

That said, the pricing changes were appreciated across the Street, and most analysts shared a positive view.

These pricing changes also highlight Adobe Inc.’s (NASDAQ:ADBE) balanced pricing strategy to remain competitive. The company recently struck a deal with the General Services Administration to lower the price of its software for U.S. government agencies. The move appears prudent given the administration's focus on reducing costs and improving digital services.

Adobe Inc. (NASDAQ:ADBE) is a global leader in creative and digital marketing software. Its flagship products, such as Photoshop, Illustrator, and Acrobat, have become industry standards for content creation and document management, serving a diverse range of customers from individual creators to large enterprises. Its product platforms empower users to create, collaborate, and enhance digital experiences.

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