Adobe (ADBE) shares dropped Thursday after the company’s results the day before came with an underwhelming revenue outlook, but analysts still have largely bullish, if tempered, expectations for artificial intelligence (AI) monetization by the company.
The Creative Cloud company “has been a frustrating stock for much of FY24,” Mizuho Americas analysts said in a note Thursday. The firm maintained its “outperform” rating but lowered its price target to $620 from $640. Adobe stock fell more than 13% shortly after the opening bell, and recently traded at $480.37, off 12.6%. The stock has dropped nearly 20% in 2024.
Despite the lower price target, the Mizuho analysts “remain confident ADBE will significantly monetize its Generative AI innovations going forward,” they wrote.
Adobe Digital Media President David Wadhwani said the company plans to introduce a more expensive version of its Firefly generative AI toolset, according to an earnings call transcript provided by AlphaSense. The offering …