Adobe Stock Price Target Cut to $460 by Oppenheimer Ahead of Q3 Earnings

Adobe Inc. (NASDAQ:ADBE) is one of the AI Stocks In The Spotlight For Investors. On September 9, Oppenheimer analyst Brian Schwartz lowered the price target on the stock to $460.00 (from $500.00) while maintaining an Outperform rating.

The rating, issued as part of a fiscal Q3 earnings preview, reflects low expectations into the earnings print considering how its valuation has “a lot of bad news.”

Nevertheless, Q3 report may not change investor sentiment and that Adobe is unlikely to offer any product or financial updates until its MAX customer conference.

“Bottom Line: Sentiment and expectations remain low on Adobe over growth concerns and with it residing in the less defensible business cohort in the AI transition by investors. Nevertheless, there are drivers to sustain top-line growth with faster earnings growth. Further, ADBE looks washed out with multiples trading at five-year lows. This suggests limited downside despite well-understood concerns over AI positioning, competition, and penetration. Lower PT to $460 from $500 on group-multiple compression.”

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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