Jefferies and HSBC Cut Adobe Inc. (ADBE) Price Targets

Adobe Inc. (NASDAQ:ADBE) is one of the 15 AI Stocks With Explosive Growth Potential.

Adobe Inc. (NASDAQ:ADBE) is one of the best AI stocks with explosive growth potential. On February 23, Jefferies reduced its price target on Adobe Inc. (NASDAQ:ADBE) from $400 to $290 and kept its Hold rating on the stock.

The research firm pointed out that application software companies have been hit harder than the broader software sector. Jefferies believes there is ongoing risk in certain segments and downgraded four companies in the space based on its new AI risk framework and company-specific concerns. The firm also cut price targets for several other stocks, including Adobe Inc. (NASDAQ:ADBE).

Earlier, on February 13, HSBC also lowered its price target on Adobe Inc. (NASDAQ:ADBE) from $388 to $302 and maintained its Hold rating on the stock. The research firm pointed to growing medium- to long-term competitive risks for Adobe Inc. (NASDAQ:ADBE) from AI tools. HSBC believes that these AI-powered tools could make it easier for users to access similar creative services, which could potentially weaken the company’s core creative business.

Adobe Inc. (NASDAQ:ADBE) is a global leader in digital media and digital marketing solutions. It provides 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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