Adobe Stock Gets a Buy Rating Ahead of Earnings. AI Is Just One Reason.

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The upgrade comes ahead of the company's fiscal third-quarter earnings results

A Mizuho analyst boosted his rating on Adobe stock to Buy, citing demand for the software provider’s artificial intelligence tools and improved fundamentals.

Since June, analysts at UBS, BofA Global Research, and Wells Fargo have all boosted their target price on shares. BofA and Wells Fargo also upgraded their rating on shares to Buy. The average analyst price target on shares is $561.93, according to FactSet. The upgrade is also “a function of accelerating web traffic, an improving pipeline and likelihood of a return to larger deals,” he added.

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