Analysts set a $264 price target for ADBE, citing strong AI growth and undervalued earnings despite a 44% year-long drop.
Adobe (NASDAQ:ADBE) shares have plunged 44% over the past year, trading at $194.90 as of June 22, 2026, but analysts see a 35% rebound potential. A $264.05 price target reflects confidence in AI-driven growth, with AI-first annual recurring revenue tripling to over $500 million.
The stock trades at 8x forward earnings, well below its 52-week high of $392.58, despite record Q2 FY2026 revenue of $6.62 billion, up 13% year over year. Non-GAAP EPS of $5.96 marked the fifth consecutive beat, with management raising guidance amid AI partnerships with Microsoft and Anthropic.
Analysts argue the market has overpriced AI disruption risks, leaving room for upside even in bear-case scenarios. The stock remains 28% below its peak but shows resilience near its $190.12 low.