In a report released today, Keith Weiss from Morgan Stanley maintained a Buy rating on Adobe, with a price target of $510.00.
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Keith Weiss has given his Buy rating due to a combination of factors that suggest Adobe’s stock presents a favorable risk/reward profile. The shares are currently trading at low multiples, which implies that the market is not fully recognizing Adobe’s potential for growth through innovation in its Digital Media segment. The company’s strategy to segment its business and adjust pricing for different customer cohorts is expected to enhance growth, particularly by pushing innovation at the high-end of the portfolio.
Additionally, Adobe’s introduction of GenStudio is seen as a significant development that strengthens its competitive position by integrating Digital Media and Digital Experience more effectively. This foundational architecture is expected to optimize the content supply chain and provide specific use cases like performance marketing, which could deepen Adobe’s moat in the market. Overall, these strategic initiatives, combined with the potential for improved earnings per share growth, support the Buy rating as the stock appears undervalued relative to its growth prospects.
According to TipRanks, Weiss is a 5-star analyst with an average return of 13.8% and a 67.14% success rate. Weiss covers the Technology sector, focusing on stocks such as Microsoft, Salesforce, and CrowdStrike Holdings.