Analyst Keith Weiss from Morgan Stanley maintained a Buy rating on Adobe (ADBE – Research Report) and keeping the price target at $660.00.
Keith Weiss has given his Buy rating due to a combination of factors influencing Adobe’s current market position and future potential. Despite recent underperformance in Adobe’s stock compared to its large-cap software peers, Weiss sees a favorable risk/reward scenario due to the company’s strategic initiatives and upcoming events that may act as catalysts for growth.
Weiss highlights that the upcoming Adobe Summit could serve as a positive catalyst, providing management an opportunity to address investor concerns about Adobe’s competitive positioning and its GenAI strategy. Additionally, Adobe’s plans to introduce new subscription tiers and add-ons, such as a higher-priced Firefly offering, are expected to enhance monetization efforts. These initiatives, combined with the potential for a more back-end-loaded year, suggest that Adobe is well-positioned to capitalize on its strengths and address market challenges effectively.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $650.00 price target.