Adobe Inc. (ADBE) a Moderate Buy, Analysts See 52% Upside

Adobe Inc. (NASDAQ:ADBE) is among the 12 Most Profitable NASDAQ Stocks to Buy Right Now. On January 26, UBS trimmed its price target on the stock to $340 from $375, while keeping a Neutral rating.

The revision followed Baird’s adjustment to the stock on January 14 when it slashed the price target on the shares to $350 from $410 and reiterated a Neutral rating.

Earlier on January 13, Oppenheimer downgraded Adobe Inc. (NASDAQ:ADBE) to Perform from Outperform, citing reduced growth in Digital Media. The firm had anticipated AI business momentum to spur growth in the business, but the results did not meet expectations.

While Oppenheimer analysts led by Brian Schwartz see opportunities in the near-term for the stock, they note that a challenging operating environment is likely to impede share price performance this year. They were quoted as saying the following in a research note to investors:

“In our view, Adobe has good medium-term opportunities and is a cheap stock. However, a challenging operating environment during the AI technology transition leading to uninspiring and decelerating top-line growth, inconsistent execution with product cycles, durability concerns about the moat, lackluster investor interest for owning software names, and down y/y operating margin guidance in FY26 will likely weigh negatively on the sentiment for the company’s opportunities this year, and limit near-term upside for ADBE shares.”

Despite the recent price target cuts, the stock is a Moderate Buy, with a one-year average share price target of $445.76, representing an upside of 52%, as of the close of business on January 30.

Adobe Inc. (NASDAQ:ADBE) is a global technology company that offers a range of web design tools, digital art, content creation, and related services. It is best known for its Adobe Acrobat and Photoshop image-editing tools.

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Disclosure: None.