10 Best Enterprise Software Stocks to Buy Now

07. Adobe Inc. (NASDAQ:ADBE)

Average Analyst Share Price Target Upside: 8.52%

Average Analyst Share Price Target: $601.38

Adobe Inc. (NASDAQ:ADBE) has re-emerged as a beneficiary of generative AI, despite initial concerns. The company posted a strong “beat and raise” quarter, with 10% YoY revenue growth, driven by the success of its AI products like Firefly. Adobe Inc. (NASDAQ:ADBE) robust financials, including $8.07 billion in cash, support its growth outlook. With management guiding for continued revenue increases, analysts consider the stock attractive, trading at a reasonable valuation given its strong growth and profitability. Adobe Inc. (NASDAQ:ADBE) has significant growth potential, with an average share price target of $601.38, reflecting an upside of 8.52%. This optimistic outlook underscores confidence in Adobe Inc. (NASDAQ:ADBE) ability to continue its strong performance, driven by its innovative product offerings and robust financial health.

Polen Global Growth Strategy stated the following regarding Adobe Inc. (NASDAQ:ADBE) in its Q2 2024 investor letter:

“With Adobe Inc. (NASDAQ:ADBE), in some ways, we see it as a microcosm of the market’s “shoot first, ask questions later” approach to categorizing AI winners and losers. In the early part of last year, Adobe came under pressure with a perception that generative AI (GenAI) would represent a material headwind to their suite of creative offerings. In short order, the company introduced its GenAI offering, Firefly, which shifted the narrative to Adobe as a beneficiary with a real opportunity to monetize GenAI in the near term. Earlier this year, that narrative was again challenged as the company reported a slight slowdown in revenue growth. Results in the most recent quarter were robust as the company raised its full-year forecast across a number of key metrics and showcased better-than-expected results.”