William Blair analyst Jake Roberge has maintained their bullish stance on ADBE stock, giving a Buy rating yesterday.
Jake Roberge has given his Buy rating due to a combination of factors that highlight Adobe’s promising growth trajectory and strategic positioning in the AI space. The analyst was particularly impressed by Adobe’s significant annual recurring revenue (ARR) influenced by AI, which has surpassed $3.5 billion. This growth is attributed to an influx of new users to products like Express, increased usage and retention of Adobe’s core applications, and strategic price increases across its creative cloud offerings.
Moreover, Adobe’s innovative AI products, such as Firefly Services and GenStudio, are gaining traction, with over 1,400 customers developing custom models and some scaling to substantial contracts. The company’s strategy of promoting joint creative and marketing deals, referred to as One Adobe sales, has also seen impressive growth, more than doubling compared to the previous year. Additionally, there is strong demand for Adobe’s Gen Video solutions, with a high percentage of Firefly app users actively creating videos, indicating a robust user engagement that bodes well for future monetization opportunities.
In another report released yesterday, BMO Capital also maintained a Buy rating on the stock with a $495.00 price target.