Analysts forecast significant gains for ADBE despite a 44% year-to-date decline amid leadership changes and AI strategy shifts.
J.P. Morgan analysts project Adobe (NASDAQ: ADBE) shares could rise 74% over the next year, citing undervaluation after a 44% drop in 2024. The stock has lagged broader software sector rebounds following April lows.
Adobe faces leadership transitions, including CEO Shantanu Narayen’s retirement and CFO Dan Durn’s departure, alongside a strategic pivot toward AI-first applications. The company’s second-quarter results coincided with Durn’s exit, adding to near-term uncertainty.
The iShares Expanded Tech-Software Sector ETF briefly turned positive for the year in May but has since retreated, leaving select software stocks poised for recovery.