Shares of Adobe Inc. (NASDAQ: ADBE) have surged nearly 3% following Morgan Stanley’s bullish forecast.
Analyst Keith Weiss from Morgan Stanley confidently predicts that ADBE stock could surge an additional 25% over the next year. This projection comes on the heels of Adobe’s astounding 57% surge in the current year, fueled by the market’s growing optimism regarding its robust artificial intelligence (AI) strategy.
Weiss has upgraded Adobe’s stock from equal-weight to overweight. His newly established Street-high target of $660 for Adobe’s stock is a mere whisker away from the company’s record of $688.37 achieved in 2021. His bullish stance stems from the greater clarity on AI-enabled products and a highly promising monetization roadmap, both of which have bolstered confidence in Adobe’s ability to reaccelerate its creative cloud organic growth engine.
Last month, the maker of software such as Photoshop boosted its full-year revenue and profit outlooks while unveiling its generative AI innovations across its product lineup. Weiss confidently predicts that Adobe’s earnings growth will return to the mid or high-teens over the next three years.
This year’s remarkable rally in Adobe’s shares commenced in late May when the stock surged 40%. This surge came as the San Jose, California-headquartered company gave investors a glimpse of its AI strategy and calmed worries that it would get left behind by smaller firms specializing in the new technology.