Adobe (ADBE) Stock Looks Attractive Even as AI Worries Persist
Complete. Here is the key summaryAdobe (ADBE) stock is rated a Buy with a $241.3 price target despite AI adoption concerns and high tax/compensation costs. The company delivered strong Q2 2026 results, and conservative profit metrics suggest the stock is undervalued. Analysts project low double-digit GAAP EPS growth in 2027, driven by share buybacks and steady organic expansion.
Adobe (ADBE) looks attractive even as worries about artificial intelligence (AI) adoption continue to weigh on the stock. The creative software company delivered sound Q2 2026 results. However, investors remain concerned about the long-term impact of AI on its subscription business, which remains a key driver of revenue.
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Adobe also faces ongoing issues with high tax costs and stock compensation. Even so, judging the stock by its strict, conservative profits shows it is currently a bargain.
My rating on ADBE is a Buy with a 12-month price target of $241.3 per share. The company is likely to post low double-digit GAAP earnings per share (EPS) growth in 2027, driven by share buybacks and steady, albeit modest, organic earnings expansion.