Adobe Inc. (NASDAQ:ADBE) is one of the best AI software stocks to buy according to hedge funds.
Citi cut the price target on Adobe Inc. (NASDAQ:ADBE) to $228 from $264 on June 12 and reaffirmed a Neutral rating on the shares, telling investors in a research note that the company reported “relatively solid” fiscal Q2 numbers
However, Citi pointed to “more signs of disruption” with an implied $500M cut in its fiscal 2026 organic annual recurring revenue outlook. The firm cut estimates post the earnings print. Adobe Inc. (NASDAQ:ADBE) also received a rating update from Freedom Broker on the same day.
The firm downgraded the stock to Hold from Buy, bringing the price target on the shares down to $250 from $510 and telling investors in a research note that the company’s growth quality shifted this quarter, as the acceleration was acquired rather than organic. It believes that the company is now in a “show-me phase” and added that management is deliberately trading near-term subscription revenue for top-of-funnel reach. Adobe Inc. (NASDAQ:ADBE) is a global technology company that provides digital marketing and media solutions.