On Monday, Adobe Inc. (NASDAQ:ADBE) shares fell by 1.17%, extending its surprising post-earnings decline to more than 13%. The company announced its fiscal fourth-quarter results last Thursday before the open, beating analyst expectations on revenue and GAAP earnings. However, a wave of analyst price target cuts added pressure to the stock price, resulting in extended declines.

Jefferies analyst Brent Thill lowered his price target on Adobe shares to $680 per share from $760, citing general industry pressure. On the other hand, his Credit Suisse counterpart Philip Winslow now has a PT of $625, down from $700, while the Bank of America’s Brad Sills lowered to $640 from $720, attributing his analysis to lingering re-opening headwinds amid covid-19 pandemic.

The company posted FQ4 non-GAAP earnings per share of $3.20, in line with expectations. On the other hand, its GAAP EPS of $2.57 slightly outperformed expectations of $2.53, while revenue for the quarter surged by 20.2% from the same quarter last year to $4.11 billion, surpassing expectations by $20 million.

It may be time to pounce on growth

Although Adobe shares trade at a steep P/E ratio of 54.88, analysts expect its bottom line to grow by more than 80% this year before rising at an average annual rate of 15.35% over the next five years.

Therefore, the stock could be an exciting option for long-term investors.

Technically, Adobe shares seem to have recently plummeted to retest the trendline support of a sharply descending channel formation. As a result, the stock has fallen closer to oversold conditions, creating an opportunity for a rebound.

Investors could target technical rebounds at about $579.44 or higher at $607.60, while $523.32 and $494.71 are crucial support zones.

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