DA Davidson Reaffirms Buy on Adobe (ADBE) After Figma’s S-1 Filing

Adobe Inc. (NASDAQ:ADBE) is one of the 13 Best Large Cap Stocks to Buy Right Now. On July 2, DA Davidson maintained its “Buy” rating on Adobe Inc. (NASDAQ:ADBE) with a price target of $500.

This decision came after Figma filed its S-1 for an IPO. The research firm pointed out that Figma shows financial strength with $821 million in revenue over the last twelve months, showing a 48% year-over-year growth as of Q1 2025. Figma also posted 18% non-GAAP operating margins.

DA Davidson Reaffirms Buy on Adobe (ADBE) After Figma's S-1 Filing

A team of engineers and scientists collaborating at a workstation surrounded by their applications and solutions.

DA Davidson sees Figma’s success as proof of its goal to make design easier and more accessible through collaborative tools that help both individuals and teams by reducing technical barriers. The research firm noted that Figma and Adobe Inc. (NASDAQ:ADBE) are well-positioned to benefit as artificial intelligence accelerates the output of digital products.

According to the research note, the $500 price target for Adobe Inc. (NASDAQ:ADBE) represents 22 times the company’s expected earnings per share for fiscal year 2026.

Adobe Inc. (NASDAQ:ADBE) is a global leader in digital media and digital marketing solutions that offer creator tools and services to individuals, teams, and enterprises to create, publish, and promote content.

While we acknowledge the potential of ADBE as an investment, 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 a 100x upside potential, check out our report about the cheapest AI stock.

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