Adobe, Inc. (NASDAQ:ADBE) shares rose on Thursday as investors and Wall Street digested the software company's fourth-quarter earnings report.
- ADBE stock is moving. See the chart and price action here.
JPMorgan analysts weighed in on the report on Thursday, highlighting the "stickiness" of Adobe's product ecosystem.
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The firm said the software giant is leveraging deep customer loyalty and rapid AI adoption to drive growth, prompting the analysts to maintain an Overweight rating and a $520 price target on Adobe shares.
The product “stickiness” is visible in the company’s deal metrics. The fourth quarter saw a record number of deals exceeding $1 million, signaling that enterprise customers are deepening their commitment to Adobe's platform rather than pulling back.
The analyst report also notes that “AI-influenced ARR” accounts for more than one-third of Adobe's overall business and consumption of generative AI credits across Creative Cloud and Firefly jumped 3x quarter-over-quarter.
JPMorgan views Adobe shares as “materially undervalued” given the company's elite profitability and the successful proliferation of its AI strategy.
Several analysts also updated coverage on Adobe following the print, including:
- DA Davidson analyst Gil Luria maintained Adobe with a Buy and a $500 price target.
- Jefferies analyst Brent Thill maintained a Buy rating and lowered the price target from $590 to $500.
- Wolfe Research maintained Adobe with an Outperform and lowered the price target from $450 to $440.
- TD Cowen analyst J. Derrick Wood maintained a Hold rating and lowered the price target from $420 to $400.
- Morgan Stanley analyst Keith Weiss maintained an Equal-Weight rating and lowered the price target from $450 to $425.
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