DA Davidson Keeps Buy Rating for Adobe (ADBE) After Q3 FY 2025 Results

Adobe Inc. (NASDAQ:ADBE) is one of the 10 Unrivaled Stocks of the Next 3 Years. On September 12, DA Davidson reaffirmed its Buy rating on Adobe Inc. (NASDAQ:ADBE) with a price target of $500.

This decision came after Adobe Inc. (NASDAQ:ADBE) reported results for its third quarter of fiscal year 2025.

DA Davision noted that the company has reached its goal of $250 million AI-first Annual Recurring Revenue (ARR) earlier than expected. This shows that Adobe Inc. (NASDAQ:ADBE) is successfully increasing the use of its AI-powered product portfolio.

The firm pointed out that Adobe Inc. (NASDAQ:ADBE) is also actively buying back shares at current price levels and maintaining strong operating margins in the mid-40% range. This supports double-digit earnings growth for the company.

DA Davidson’s price target of $500 for Adobe Inc. (NASDAQ:ADBE) is based on 21 times the company’s expected earnings per share for fiscal year 2026.

Adobe Inc. (NASDAQ:ADBE) is a leading digital media and digital marketing solutions company that offers 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.