Current trend

The shares of Adobe Inc. hit a 10-month low in yesterday's trading session, reflecting a 14.5% downtrend since early February. From a November 52-week high, the issuer is down by more than 34%, falling by 7.54% over the past week, while the S&P 500 lost 2.75%.

The company's management expects sales growth of 13% to $17.9B in 2022, with a 10% increase in earnings per share to $13.7. The Wall Street experts predict revenue of $18B in fiscal 2022, which ends in November, and $20.6B in 2023. Assuming a current free cash flow margin of 44%, the figure in 2023 will be about $9.06B, which means an increase of 24% compared to the current indicator. Previously, analysts at Piper Sandler Co. lowered the price target for shares of Adobe Inc. to $600 from $630 while maintaining its Best market recommendation.

The General Counsel and Secretary of the Corporation's Board of Directors sold 5.3K shares of the company for a total of $2.7M.

Support and resistance

The company's shares continue to show negative dynamics, renewing multi-month lows. At the moment, quotes are testing the level of 450.00, while 485.00 is a "mirror" resistance. There is potential for further decline. Indicators reflect the strength of sellers: the price consolidated below MA (50) and MA (200); MACD histogram is in the negative zone. It is better to open the positions from the key levels.

Comparative analysis of the company's multipliers and companies-competitors in the industry indicates the neutrality of the asset.

Resistance levels: 485.00, 500.00, 540.00.

Support levels: 450.00, 430.00, 400.00.