Baird Slashes Adobe (ADB) PT to $350 Amid AI Competition, Growth Hurdles

3 days ago 5

Maham Fatima

Sun, February 1, 2026 astatine 12:26 PM CST 2 min read

Adobe Inc. (NASDAQ:ADBE) is 1 of the most undervalued ample headdress stocks to put successful now. On January 14, Baird reduced its terms people for Adobe to $350 from $410 portion maintaining a Neutral standing connected the shares.

A time earlier that, Oppenheimer downgraded Adobe from Outperform to Perform and noted that the expected AI-driven maturation successful the Digital Media concern failed to materialize, starring to decelerating maturation successful FY2025. While the steadfast views Adobe arsenic a inexpensive banal with bully medium-term opportunities, it expects respective factors to bounds near-term upside and negatively interaction sentiment successful 2026. These headwinds see a challenging AI modulation environment, uninspiring top-line growth, inconsistent merchandise rhythm execution, concerns regarding the company’s competitory moat, anemic capitalist involvement successful software, and disappointing year-over-year operating borderline guidance for FY2026.

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On January 11, Goldman Sachs assumed sum of Adobe Inc. (NASDAQ:ADBE) with a Sell standing and a $290 terms people arsenic portion of a broader initiation of 12 bundle assemblage stocks. While the steadfast views AI adoption arsenic a affirmative semipermanent tailwind for the bundle industry’s TAM implicit the adjacent decade, the steadfast noted that Adobe’s high-end spot number is presently nether pressure. This stems from worth progressively accruing astatine the little extremity of the market, wherever Goldman Sachs believes Adobe has minimal exposure.

Adobe Inc. (NASDAQ:ADBE) operates arsenic a exertion institution worldwide. The institution has a strategical confederation with HUMAIN for the improvement of generative AI models and AI-powered applications.

While we admit the imaginable of ADBE arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.