Adobe’s Stock Plunged After Its Outlook Disappointed. Analysts Are Bullish on AI Growth. | Global News Avenue

Adobe(adbe) Shake after sharing the company’s outlook on Thursday Below expectationsbut analysts say they are still bullish on the stock, indicating its potential for AI-driven growth.

Jefferies analysts said they were surprised by the sharp decline in stocks after the results, which they thought was “positive enough to offset the negatives”, adding that “the adoption rate of AI is high,” Adobe is poised to drive revenue growth for AI-driven. Analysts maintained a “buy” rating and a stock target of $650, suggesting a 70% upside potential from Thursday’s closing price.

Bank of America analysts raised their target target from $605 to $528, but retained a “buy” rating, saying they expect Adobe to be “a road” to improve AI monetization. Analysts highlighted that both Photoshop and Lightroom Generative AI’s monthly active users increased during this period.

Adobe reported $125 million in annual recurring revenue for AI at the end of the quarter, and CEO Shantanu Narayen said he expects to double by the end of fiscal 2025, according to a transcript of company property phone calls provided by Alphassense.

More AI updates are expected next week at the company’s Adobe Summit event, which an analyst said before might be More beneficial Compared to quarterly results.

Adobe shares fell nearly 14% on Thursday to close at $377.84. They have lost about a third of their value in the past 12 months.

Update – March 13, 2025: This article has been updated since its first release to reflect the latest share price value.