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Investing.com - Stifel has reiterated its Buy rating and $480.00 price target on Adobe (NASDAQ:ADBE) stock, according to a research note released Tuesday. This aligns with InvestingPro analysis, which indicates Adobe is currently undervalued, with the stock trading at $358.66 and showing a P/E ratio of 22.7x.
Stifel analyst Parker Lane based the assessment on conversations with five Creative Cloud customers about how leading brands are navigating the evolving digital media environment, particularly regarding generative AI’s role in content creation.
The research found that the Creative space appears to be further along in adopting generative AI tools compared to other markets, with all surveyed customers using Adobe’s Firefly AI technology alongside other models and tools.
Stifel noted that Adobe shares currently show "depressed performance and multiple" relative to the company’s 2025 outlook, creating what the firm sees as a "favorable near-term risk/reward" profile for investors.
The firm acknowledged ongoing investor concerns, including fears about competition and uncertainty regarding "the future state of Creative teams and departments," but maintained its positive stance on the stock.
In other recent news, Adobe is preparing to release its fiscal third-quarter earnings report, with several analyst firms adjusting their outlooks. Oppenheimer has lowered its price target for Adobe to $460, citing "group-multiple compression," but continues to rate the stock as Outperform. RBC Capital also reduced its price target to $430 while maintaining an Outperform rating, expressing expectations for solid third-quarter results. Mizuho has adjusted its price target to $460, noting mixed signals with strong enterprise activity but challenges in web traffic growth. Meanwhile, Deutsche Bank has reiterated its Hold rating and $475 price target, anticipating stable results amid a "challenging AI bear narrative." Similarly, TD Cowen has maintained its Hold rating and a price target of $470, highlighting mixed results from a partner survey and a slowdown in third-party credit card data growth. These developments come as Adobe navigates a complex market environment ahead of its earnings announcement.
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