Adobe vs. Oracle: Morgan Stanley Sees 32% Upside in One Stock and 10% Downside in the Other Ahead of Earnings

Ahead of earnings on September 10, Morgan Stanley is signaling a split outlook for software giants Oracle and Adobe. The bank keeps an Equal-weight rating on Oracle and raises its price target to $210 from $207, implying roughly 32% upside. For Adobe, it maintains an Underweight rating with a $240 target, which suggests about 10% downside. Wall Street expects Adobe to report fiscal Q3 adjusted earnings of about $6.08 per share and revenue near $6.69 billion, up 11.7% year over year, while Oracle is forecast to post EPS of $1.74 and revenue of $19.13 billion. The firm cites potential upside tied to Oracle’s cloud growth and GPUaaS, while Adobe’s CEO transition to Anil Chakravarthy on December 1 adds uncertainty.