Goldman Sachs Reiterates its Buy Rating on Adobe, Keeps PT at $570

Adobe Inc. (NASDAQ:ADBE) is one of the Best Affordable AI Stocks to Buy. On July 30, Goldman Sachs reiterated its Buy rating on Adobe Inc. (NASDAQ:ADBE), keeping the price target at $570.

Kash Rangan from Goldman Sachs kept his rating on ADBE following the company’s Q2 FY2025 results. The analyst remains positive about Adobe’s growth trajectory, mentioning the company’s massive content supply chain platform that has fueled Adobe Experience Platform and Apps subscription up by 40% year-over-year. During Q2, the company achieved record revenue of $5.87 billion, reflecting 11% growth from a year ago. Rangan sees this as evidence of Adobe’s expanding enterprise market share.

The company’s Firefly app is growing rapidly, with first-time subscribers growing 30% year-over-year during Q2. Rangan believes that opens monetization potential for Adobe through higher-priced tiers and generative credit consumption models. Moreover, the company accepts its AI initiatives, such as Acrobat AI Assistant and Firefly, to contribute almost $250 million to the revenue in FY2025. The analyst mentioned that this could provide additional revenue growth as consumption-based AI features scale, especially in areas such as AI-enabled video generation.

Adobe Inc. (NASDAQ:ADBE) is a leading technology company that offers AI features through three segments, including Digital Media, Digital Experience, and Publishing and Advertising.

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