Adobe Inc. (ADBE)’s Upside Potential at 71% Despite Recent Price Target Reductions

Adobe Inc. (NASDAQ:ADBE) is among the 10 Best Magic Formula Stocks for 2026. On February 23, Jefferies slashed its price target on the stock to $290 from $400, citing the ongoing negative sentiment around application software names, while reiterating a Hold rating.

Adobe Inc. (ADBE)'s Upside Potential at 71% Despite Recent Price Target Reductions

Shares fell sharply in response to the development, slumping 4.61% on Monday to close at $246.68. Jefferies’ update follows HSBC’s adjustment on the stock on February 13, when it cut the price target to $302 from $388 with a Hold rating. The bank said it anticipates AI-powered tools to pose a competitive risk to the company over the medium to long term.

Earlier in the month, on February 3, Piper Sandler downgraded Adobe Inc. (NASDAQ:ADBE) to Neutral from Overweight and cut its price target to $330 from $470.

Despite recent price target reductions, the stock sports a Moderate Buy rating with an average share price upside potential 70.9%, as of the close on February 23.

Adobe Inc. (NASDAQ:ADBE) is a global technology company that offers a range of web design tools, digital art, content creation, and related services. It is best known for its Adobe Acrobat and Photoshop image-editing tools.

While we acknowledge the risk and potential of ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADBE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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