Adobe Bullish on AI; New Capabilities Aim to Boost Workflows, Analyst Sees 37% Upside
-
Adobe unveiled new AI capabilities at recent summit, including structural/style templates to improve workflows. Analyst believes this refutes bear case around AI.
-
Adobe plans to launch more advanced 3D, audio, and video AI models later this year with big potential.
-
Adobe updated its 2027 total addressable market (TAM) estimate to $205B, a 12.6% CAGR over next 3 years due to AI monetization.
-
Analyst argues Adobe is better positioned to capitalize on "exponential growth" of AI-generated content vs Nvidia which he believes is overvalued.
-
Analyst rates Adobe a Buy with $685 price target, seeing ~37% upside over next 12 months. Consensus rating is a Moderate Buy with 24% upside.