Adobe: Jefferies confirms its Buy rating on the stock

(CercleFinance.com) - Jefferies maintains its Buy rating on Adobe shares, with an unchanged price target of $700.


Despite the stock's underperformance and reduced valuation, a significant recovery is not expected after fiscal Q2 results, which should be in line with expectations with minimal upside potential, the analyst believes.

Investor fears related to AI and an unstable macroeconomic environment are persistent obstacles, and any improvement could wait until the fourth fiscal quarter with positive factors such as price changes, Adobe's MAX conference and seasonality.

Despite the underperformance of the shares (-23% YTD), the valuation is well below the sector average.

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