$Adobe(ADBE.US)

According to Wall Street analysts, Adobe $Adobe(ADBE.US) is one of the best software stocks to buy. Adobe's $Adobe(ADBE.US) current stock price is near its 52-week low. However, Wall Street remains optimistic, with analysts projecting a 12-month target price that implies over 40% upside from current levels.

Recently, on January 26, UBS Group's Karl Keirstead reiterated a "Hold" rating on the stock and lowered the target price from $375 to $340. Earlier, on January 12, Goldman Sachs' Gabriela Borges downgraded the stock from "Buy" to "Sell" while maintaining the $290 target price.

Goldman Sachs analysts noted that relatively weak growth metrics are one of the main reasons for the undervaluation of the PEG ratio. The firm pointed out that Adobe $Adobe(ADBE.US) is expected to deliver revenue growth of about 10% over the next 12 months, below the peer average of 11%. Additionally, EPS growth expectations for the next 12 months are also 10%, below the peer average of 18%. Goldman Sachs noted that this places Adobe's PEG valuation in the bottom 25%. However, it's worth mentioning that the company's projected EPS for fiscal 2026 is $22.69, indicating sustained profitability momentum.