Adobe Stock Rated as a Buy with Upside Potential

5 days ago

Parkev Tatevosian, CFA

"If nothing changes, forward PE stays the same, earnings per share stays the same, the stock price could rise to $393 per share by the end of next year. Overall, I like the risk versus reward for investors and the upside here for Adobe is nice and the downside here I think is relatively limited given its already very low record low forward PE multiples. I have Adobe stock rated as a buy and my estimate for 2026 suggests meaningful upside for investors in Adobe."

The speaker delivers an actionable trade call on Adobe stock, citing its current low forward P/E ratio and favorable earnings estimates as catalysts for a price increase. He outlines a scenario where, if fundamentals remain unchanged, Adobe could reach $393 per share, with even higher targets if the forward PE expands. Despite acknowledging potential risks from AI-driven competition, he maintains a bullish view and rates Adobe as a buy.

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