Goldman Sachs Reiterates Buy on Adobe (ADBE) with $570 Target Amid Rising AI Momentum

Adobe Inc. (NASDAQ:ADBE) is one of the 12 AI Stocks Every Investor Should Be Watching. On June 13, Goldman Sachs analyst Kash Rangan reiterated a “Buy” rating on the stock with a $570.00 price target. The rating reaffirmation follows Adobe’s fiscal second quarter 2025 results.

Despite outperforming and raising +1% to fiscal 2025 Digital Media revenue, Rangan noted how the stock fell after hours as investors have been unsure if Adobe can be consistent with its double-digit top-line growth and whether its AI revenue contribution is tangible.

Nevertheless, the firm is optimistic about Adobe’s growth trajectory due to its Adobe Experience Platform and its Apps subscription revenue, which have been up 40% year-over-year. The company’s Express platform has added over 8,000 businesses, serving as a reliable engine for user acquisition. Adobe’s AI adoption is also accelerating, resulting in Firefly App first-time subscribers of +30% Q/Q.

Rangan is particularly optimistic about Adobe’s AI strategy. He believes it is growing to play a larger role in the company’s narrative as it can help make the company’s products better and allow customers to buy higher-priced SKUs, such as the CC Pro. He noted how early evidence from the core CC suite has been promising.

Adobe expects AI-standalone SKUs to surpass a $250 million run-rate by the fourth quarter of fiscal 2025. The firm believes that this could provide additional revenue growth. All in all, Rangan believes Adobe is well-positioned to benefit as Gen-AI spending transitions from Infrastructure into Platform and Application layers.

“We reiterate our Buy rating and $570 PT following Adobe’s F2Q25 results.”

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.

READ NEXT: 10 AI Stocks on Wall Street’s Radar and 15 AI Stocks Making Waves on Wall Street.

Disclosure: None.