Adobe is the IBD Stock Of The Day as the maker of digital media and marketing software continues to advance generative artificial intelligence tools for creative professionals. ADBE stock is nearing a buy point.
Last week, Adobe announced more than 100 new generative AI features and updates for its creative software. The company added three new image generators to its Firefly family of products. It also released scores of AI features and updates across its Creative Cloud applications, including Adobe Illustrator, Photoshop, Lightroom, Premiere Pro, After Effects and Adobe Stock.
Adobe unveiled the new features at its annual Max conference in Los Angeles, drawing upbeat reactions from many Wall Street analysts.
Jefferies analyst Brent Thill reiterated his buy rating and 660 price target on ADBE stock after the Adobe Max conference.
Adobe is "enjoying the fastest pace of innovation we've seen in two decades," Thill said in a note to clients. "Adobe's comprehensive platform and product suite is hard to beat and makes it the go-to creative tool for any professional."
Generative AI Tools Have 'Wow Factor'
TD Cowen analyst Derrick Wood maintained his outperform rating and 625 price target on ADBE stock.
"Adobe remains well-positioned for (a) gen-AI uplift in both the near and long term," Wood said in his note to clients.
Generative AI uses massive data and computing power to create high-quality content — including written articles, images, videos and music — from simple descriptive phrases.
Morgan Stanley analyst Keith Weiss said Adobe's generative AI announcements at Max had a "wow factor" thanks to the breadth and quality of capabilities shown. Weiss kept his overweight rating on ADBE stock with a price target of 660.
ADBE Stock Is In Flat Base
In afternoon trades on the stock market today, ADBE stock slipped 0.4% to close at 557.87.
Adobe shares have formed a flat base with a buy point of 570.24, according to IBD MarketSmith charts. In a positive sign, the relative strength line for ADBE stock is rising as it outperforms the S&P 500 index.
Plus, the company's earnings-per-share growth has accelerated in the last two quarters.
ADBE stock ranks first in IBD's Computer Software-Desktop industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 98 out of 99.
Further, ADBE stock is on three IBD lists: the IBD 50, Big Cap 20 and Tech Leaders.
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