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 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, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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