Analyst Derrick Wood of TD Cowen maintained a Hold rating on Adobe (ADBE – Research Report), retaining the price target of $490.00.
Derrick Wood has given his Hold rating due to a combination of factors related to Adobe’s current growth strategy and market performance. The company’s recent summit highlighted its focus on new growth vectors, such as generative AI and tiered product offerings, but no new financial targets were provided. This suggests that while there are promising developments, investors may need to see how these strategies impact the company’s model before a higher valuation is justified.
Derrick Wood also noted that despite encouraging signs in AI adoption and customer cohort growth, the monetization of these innovations is still in its early stages. Adobe’s shares have decreased by 11% since March, and while the stock is trading at relatively low valuation levels, the overall growth trends need to improve for a more favorable valuation outlook. Therefore, the Hold rating reflects a cautious approach, waiting for clearer evidence of sustained growth and monetization success.
In another report released on March 14, Citi also maintained a Hold rating on the stock with a $430.00 price target.