BofA upgraded Adobe to Buy from Neutral with a price target of $630, up from $575. The analyst says the company is emerging as an artificial intelligence leader. Adobe’s AI offerings, such as generative AI-powered content creation tool Firefly, are likely to begin driving “meaningful” revenue and free cash flow upside as soon as fiscal 2024, the analyst tells investors in a research note. The firm sees three potential AI monetization opportunities for the company: a paid Firefly subscription, credit packs for Firefly consumption, and custom agreements with global brands to blend data with Adobe’s. It believes the company’s AI revenue will growth from $300M in 2024 to $960M by 2026.
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