CLSA initiated coverage of the company with an ‘Outperform’ rating and $300 price target, implying an upside of more than 31% from its last close.

  • CLSA said that enterprise software has "plentiful moats," and that it was constructive that current disdain for the sector will eventually fade.
  • Among the six names that it covered, it said it prefers Microsoft and Adobe.
  • On Monday, Adobe unveiled new AI-powered capabilities for Project Indigo, its experimental iPhone camera app. 

Adobe Inc. (ADBE) shares fell nearly 3% in premarket trading on Tuesday, a day after the company unveiled new AI-powered capabilities for Project Indigo, its experimental iPhone camera app. 

The update introduces large language model-driven photo critiques and editing recommendations, building on existing features such as pro controls, multi-frame super-resolution and multiple capture modes.

Meanwhile, CLSA initiated coverage of the company with an ‘Outperform’ rating and $300 price target, implying an upside of more than 31% from its last close. 

Wall Street Stance On ADBE Stock

CLSA said that enterprise software has "plentiful moats," and that it was constructive that current disdain for the sector will eventually fade, as per TheFly. 

The firm added that it believes the sector "must first become leaner." Among the six names that it covered, it said it prefers Microsoft Corp. (MSFT) and Adobe.

Meanwhile, as per Koyfin data, the 12-month average price target on ADBE shares is $273.28, implying an upside of about 16% from its last close. 

Of the 40 analysts covering the stock, 12 have a ‘Buy’ or higher rating, while 24 analysts have a ‘Hold’ rating on the company. The rest have a ‘Sell’ or lower rating. 

What Does Retail Think About ADBE Stock?

On Stocktwits, retail sentiment around ADBE stock improved from ‘extremely bearish’ to ‘bearish’ territory over 24 hours, with message volume surging 514% over the same period, according to platform data.

One user said, “Sell adobe. Buy figma.”

View this Stocktwits post

However, another user said, “$ADBE the market seriously thinks AI is going to replace everything. We’re just not there yet. The market is wrong about SaaS.”

View this Stocktwits post

ADBE stock is down nearly 30% this year amid growing AI fears and a broader selloff amid software names. 

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