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.

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 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.