Morgan Stanley analyst Keith Weiss raises rating and target price on Adobe stock, citing company’s push into generative-artificial-intelligence creative software tools.
In a recent research note, Morgan Stanley analyst Keith Weiss upgraded his rating on Adobe stock (ADBE) from Equal Weight to Overweight and raised his target price to $660 from $510. This follows Adobe’s announcement of plans to offer an enterprise version of Firefly, a suite of generative-AI tools that were launched earlier this year.
Weiss’s upgrade is driven by “greater clarity” on the direction of Adobe’s AI-enabled products. He believes that the company’s “monetization road map” will lead to a reacceleration of Adobe’s creative software business. Weiss is confident that Adobe can achieve mid-to-high teens annual earnings growth over the next three years.
The analyst sees a “clear catalyst path for estimates to move higher.” In the short run, he believes that Adobe will surpass its conservative growth guidance for its digital media business. In the long run, he expects upside from the rollout of generative-AI software, such as Firefly.
In light of these positive developments, Weiss raised his revenue forecast for the November 2025 fiscal year by $1.99 billion, representing an 8% increase from his prior estimates, to reflect the boost from AI software.