Bernstein Reiterates a Buy Rating on Adobe Inc (ADBE)

​Adobe Inc. (NASDAQ:ADBE) is one of the Best SaaS Stocks to Buy Right Now. On December 12, Mark Moerdler from Bernstein reiterated a Buy rating on Adobe Inc. (NASDAQ:ADBE) but lowered the price target from $508 to $506. Earlier on December 11, Brian Schwartz from Oppenheimer also reiterated a Buy rating on the stock and lowered the price target from $460 to $430.

​The ratings follow the company’s fiscal Q4 2025 results released on December 10. Adobe Inc. (NASDAQ:ADBE) grew its quarterly revenue by 10.49% year-over-year to reach $6.19 billion, ahead of the estimates by $83.30 million. Moreover, the EPS of $5.50 also topped the consensus by $0.10. The growth was driven by an 11% year-over-year growth in the Digital Media segment and a 9% growth in the Digital Experience segment.

​Management also provided optimistic revenue and EPS targets for fiscal 2026. The company expects full-year revenue to be in the range of $25.90 billion to $26.10 billion, along with an EPS of $17.90 to $18.10.

​Brian Schwartz from Oppenheimer noted that while the Q4 results and the FY 2026 guidance were above the consensus, the guidance implies high single-digit growth and lower operating margins. Schwartz believes that this presents tough optics for the company and also paves the way for unwanted new opinions on the stock.

On the other hand, Mark Moerdler from Bernstein noted that he is becoming more constructive on Adobe Inc. (NASDAQ:ADBE) as the company’s AI implementation strategy across all customer segments is gaining more clarity.

​Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital marketing and media solutions.

While we acknowledge the potential of ADBE to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ADBE and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.