Why Analysts Can’t Quit Adobe Even After Disappointing Revenue Guidance | Global News Avenue

Adobe (Adebe) shares fell on Thursday after the company reported results the day before. Poor income prospectsbut analysts are still concerned about Artificial Intelligence (AI) Monetized by the company.

Mizuho Americas analysts said in a note Thursday that the Creative Cloud company “has been a dismal stock for most of fiscal 2024.” The company maintained an “outperform” rating but downgraded it price target Increased from $640 to $620. Adobe shares fall Shortly after the opening, shares rose more than 13% and were last trading at $480.37, down 12.6%. The stock has fallen nearly 20% in 2024.

More expensive Firefly AI toolset coming soon

Despite the lower price target, Mizuho analysts “still believe ADBE will significantly monetize its generative artificial intelligence Innovation for the future,” they wrote.

Adobe Digital Media president David Wadhwani says the company plans to launch a more expensive version Firefly generates AI toolsetaccording to earnings call transcripts provided by AlphaSense. The product aims to “monetize new users” and increase average revenue per user”, Wadhwani said.

Analysts at Bank of America (BofA) lowered their Adobe target price to $605 from $640 on Thursday, but also maintained a “buy” rating.

Bank of America analysts described the latest quarter as the end of “a year of delayed gratification for AI,” although they said they had seen “some encouraging re-acceleration leading indicators as we move into next year.”