Adobe scores pair of upgrades; Microsoft called a buy on Q3: 4 big analyst picks
Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: upgrades at Microsoft, Adobe, Snap, and Live Nation Entertainment.
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Oppenheimer and DA Davidson both upgraded Adobe Systems (NASDAQ:ADBE) to buy-equivalent ratings.
Oppenheimer stamped the stock with a $660 price target, about 25% higher than Wednesday's close. The analysts cited Adobe’s strengthening business momentum and a promising outlook for fiscal 2024 — as well as its dominant position in generative AI, confirmed by customer and industry surveys. They believe Adobe’s focus on R&D and its AI Firefly product strategy has reenergized its product offerings, placing “the company in a better position for durable growth from adding users and monetizing on its large install-base.”
The analysts believe investors «will be rewarded through yearend and next fiscal year as concerns on penetration, pricing tolerance, and generative AI weakening the competitive moat dissipates.»
DA Davidson, along with its upgrade of Adobe, added the company to its «Best-of-Breed Bison” list — a „select group of long-term best in class companies with sustainable competitive moats“ — and raised the target by $140 to $640.
The analysts said the addition to the „Best-of-Breed Bison“ list was based, among other things, on „its position as a market leader in a >$200B FY’24 TAM, robust & predictable revenue streams, sustainable competitive advantage, exceptional financials, a powerful brand, and a shareholder-oriented management team.“
Shares were up fractionally to $522.96 in recent trading.
HSBC upgraded Microsoft (NASDAQ:MSFT) to Buy from Hold and raised its
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