Earlier today, creative software provider Adobe (NASDAQ:ADBE) rolled out new AI features for Acrobat. Nevertheless, shares slipped at the time of writing as traders likely decided to book some profits following last week’s post-earnings rally. The features are designed to boost productivity by handling multiple documents and letting users ask questions, gain insights, and create content across PDFs and Microsoft Office files.
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These tools, which are powered by Adobe Firefly, also allow users to generate and edit images using text prompts from a massive library of 3 trillion PDFs. One of the most controversial issues surrounding artificial intelligence is the type of data used to train the models. However, Adobe assures that its AI models use licensed content and public domain images, not customer data.
In addition, analyst Charlie Miner from Third Bridge notes that AI can expand Adobe’s market by making creative tools accessible to non-creators, potentially increasing the market by 20-35%.
Is Adobe a Buy, Hold, or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 19 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 14% year-to-date decline, the average ADBE price target of $605.90 per share implies 32.28% upside potential.
