Mizuho analysts labeled Adobe Systems (NASDAQ:) a “real AI winner” in a new note on Friday. Analysts highlighted the underappreciated potential of Adobe’s AI technology and the potential for significant future gains.
“Personally, I like this contrarian positive call,” the analysts enthusiastically say in the report. They see Adobe’s current lack of popularity as an advantage, indicating significant potential for new investment. “Skepticism remains extremely high and there will be a lot of potential new money coming into the stock over the next six to 12 months if our bullish thesis materializes,” they added.
Mizuho’s report describes where Adobe is positioned to capitalize on AI through its existing products and pricing strategies. While Firefly, Adobe’s creative AI engine, is well-known, analysts highlight a broader range of AI offerings. This offering can not only attract new users, but also encourage existing customers to upgrade within Adobe’s extensive creative suite.
Mizuho points to Adobe’s recent “much-needed increase and increase in core net new ARR metric in Q2/Q3” as the catalyst for renewed investor interest.
The company recommends further research into Adobe for investors looking for a “totally contrarian long that remains hated and underserved” with “modest downside risk.” Mizuho maintains a buy rating and $640 price target on ADBE.
