Software firm Adobe (ADBE) got a lot of positive feedback from Wall Street analysts after its annual creativity conference, MAX. However, some warned that AI worries could keep pressuring the stock in the short term. As a result, Adobe’s shares are down at the time of writing. Nevertheless, Piper Sandler, led by Hannah Rudoff, kept its Buy rating and $470 price target because it was impressed with Adobe’s fast innovation. Still, it stated that worries about how AI might affect Adobe’s business could persist, especially since it’s still early in AI adoption and monetization.
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Separately, Stifel’s J. Parker Lane also maintained a Buy rating and a $480 target after noting that generative AI (GenAI) is being adopted faster in the creative industry than in others. Furthermore, the three-hour keynote at MAX focused heavily on AI, particularly third-party models and partnerships. Analysts pointed out that Adobe is hosting top GenAI models while building its own Firefly models, which helps Adobe stand out as a key creative platform. Although there are concerns about future job cuts and growing competition, Stifel believes Adobe is strengthening its position with better web and mobile tools.
In addition, RBC Capital Markets, led by Matthew Swanson, kept its Buy rating and $430 price target after attending the event. Indeed, it liked Adobe’s focus on building a broader ecosystem for content creation through new tools, automation, and AI assistants. The company also showed off deeper partnerships with Google (GOOGL) and OpenAI (PC:OPAIQ), which included demos for YouTube and ChatGPT.
Is ADBE Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 18 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADBE price target of $452.55 per share implies 32.3% upside potential.
