Adobe ‘defying the narrative’ of AI posing threat, says DA Davidson

DA Davidson keeps a Buy rating and $500 price target on Adobe (ADBE) after its Q3 results. While the company is fighting an uphill battle to disprove the narrative that AI is a threat to the company’s core value proposition, this quarter’s outperformance relative to expectations and the early achievement of the $250M AI-first annual recurring revenue suggests that Adobe is effectively driving adoption of its expanding AI-infused product portfolio, the analyst tells investors in a research note.