Stifel Nicolaus Maintains Bullish Stance on Adobe (ADBE) Stock

Adobe Inc. (NASDAQ:ADBE) is one of the Most Undervalued Stocks to Buy Right Now. On November 19, Stifel Nicolaus analyst J. Parker Lane maintained a bullish stance on the company’s stock, giving a “Buy” rating. The analyst’s rating is backed by a combination of factors related to the company’s strategic acquisition of Semrush. The acquisition has been regarded as a forward-thinking move, enabling Adobe Inc. (NASDAQ:ADBE) to enhance capabilities in the emerging field of AI engine optimization (AEO), which continues to become critical as consumer behavior transitions towards AI-driven search and discovery.

Stifel Nicolaus Maintains Bullish Stance on Adobe (ADBE) Stock

In a different development, Citi reduced its price target on the company’s stock to $366 from $400, while keeping a “Neutral” rating on the shares. For Q4 2025, the firm expects the company to report a marginal beat compared to its estimates. That being said, the firm reduced its margin estimates to reflect increased investments. Notably, in Q3 2025, Adobe Inc. (NASDAQ:ADBE)’s total operating expenses increased to $3.17 billion from $2.86 billion in Q3 2024, reflecting 11% growth.

The rise was seen amidst a 15% increase in sales and marketing expenses, an 11% rise in general and administrative expenses, and 6% uplift in R&D expenses. The sales and marketing expenses rose in Q3 2025 and during the 9 months ended August 29, 2025 on a YoY basis mainly because of increases in advertising expenses and compensation costs.

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.