Mizuho Securities analyst Gregg Moskowitz has reiterated their bullish stance on ADBE stock, giving a Buy rating yesterday.
Gregg Moskowitz has given his Buy rating due to a combination of factors that suggest Adobe’s potential for growth and profitability. Despite the negative sentiment surrounding the stock in 2024, Moskowitz remains confident in Adobe’s ability to capitalize on its Generative AI innovations, which are expected to drive significant monetization and platform adoption in the future. The company’s enterprise checks have been solid, with several large multi-year deals and an increase in GenStudio deployments, indicating a positive trajectory.
Furthermore, Adobe’s Digital Media business has shown consistent web traffic growth, and the company is expected to exceed revenue forecasts, demonstrating resilience even amidst foreign exchange headwinds. The valuation of Adobe’s stock appears attractive, trading at a discount compared to the broader enterprise software group. Moskowitz’s $620 price target is based on a detailed discounted cash flow model, reflecting confidence in Adobe’s financial outlook and its strategic initiatives, making it one of his top picks.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $660.00 price target.
Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is neutral on the stock.
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