BofA reiterates Buy rating on Adobe stock with $475 price target, highlighting strong financial results.

From Yahoo Finance: 2025-07-03 10:57:00

Adobe Inc. (NASDAQ:ADBE) is highlighted as one of the top 10 undervalued AI stocks to buy, with BofA reiterating a Buy rating and $475 price target on June 26. In Q2 2025, Adobe achieved record revenue of $5.87 billion, up 11% year-over-year, with Digital Media segment revenue reaching $4.35 billion.

Analyst Bradley Sills remains optimistic about Adobe’s future, citing the company’s strong financial results and AI initiatives contributing to revenue growth. The company’s AI-driven ARR is tracking ahead of the $250 million target for 2025. Adobe is seen as being in the early stages of the agentic AI cycle.

Adobe Inc. (NASDAQ:ADBE) offers creator tools and services to create, publish, and promote content. The company is transitioning into an AI-driven company with generative AI tools. While Adobe is seen as a strong investment, other AI stocks may offer greater upside potential and less downside risk.

For investors seeking undervalued AI stocks, a free report on the best short-term AI stock is recommended. Adobe’s commitment to data governance and security is seen as key for its cloud capabilities and integration with third-party models.



Read more at Yahoo Finance: BofA Reiterates Buy Rating on Adobe Stock, Keeps PT at $475