Adobe Analysts Highlight AI Growth, Demand Trends: 'Could Mark An Inflection' In Investor Perception

Adobe Inc ADBE analysts highlight the company's AI opportunities and future growth after the company beat revenue and earnings per share estimates in the first quarter.

The Adobe Analysts: Goldman Sachs analyst Kash Rangan reiterated a Buy rating on Adobe with a $640 price target.

JPMorgan analyst Mark Murphy maintained an Overweight rating and lowered the price target from $580 to $540.

Piper Sandler analyst Brent Bracelin maintained an Overweight rating with a $600 price target.

Goldman Sachs on ADBE: Adobe's quarterly results showed a "slow but positive step" in showing the company's progress in AI, Rangan said in a new investor note.

The analyst said AI products like Firefly App and Services and GenStudio for Performance Marketing are seeing momentum.

"If this revenue momentum continues into next year and ADBE effectively monetizes its AI portfolio, this could mark an inflection in how investors will perceive the company and its growth durability over the next 3-4 years," Rangan said.

He noted that Adobe is showing that AI can be a tailwind for the company. The analyst sees Gen AI as a $4 billion opportunity for Adobe.

JPMorgan on ADBE: The new monetization plans for Adobe's AI products that was the highlight for Murphy in the earnings report.

The analyst had a balanced view on the company ahead of earnings with a lack of guidance.

"We welcome incremental AI-related disclosures provided by the company and maintain our positive view on valuation," Murphy said.

The analyst highlighted Adobe AI products like Acrobat AI Assistant, Firefly App and Services and GenStudio for Performance Marketing hitting over $125 million in bookings in the first quarter.

"In terms of the macro environment, Adobe appears to describe fairly stable demand trends overall, while in response to a tariff and trade-wars question, suggests that ‘tariffs, et cetera, don't really impact Adobe the way they impact other businesses.'"

Murphy sees Adobe's fundamentals as favorable with durable growth rates and the incremental AI monetization opportunities.

Piper Sandler on ADBE: Bracelin called Adobe's first-quarter financial results a "solid start" to fiscal 2025 in a new investor note.

"We are encouraged by the solid start to the new year evident by the 1% top-line beat and reaffirmation of the full-year 11% ARR guide for Digital Media," Bracelin said.

The analyst said Adobe's disclosures on AI products hints at new monetization opportunities.

ADBE Price Action: Adobe stock is down 11.2% to $389.32 on Thursday versus a 52-week trading range of $387.50 to $587.75. Adobe stock has fallen 11.7% year-to-date in 2025 and over 32% in the last year.

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