ADBE Stock Nears Buy Point On Latest Generative AI Products
Adobe (ADBE) on Thursday announced new enterprise applications for its Firefly generative artificial intelligence software. ADBE stock rose sharply on this news.
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The company’s Firefly for Enterprise will enable employees across the company, regardless of their creative skill level, to generate “beautiful, on-brand and instantly shareable content,” Adobe said in a press release. Editing of the AI-created images can also be done in either Adobe Express or Creative Cloud.
Firefly for Enterprise will enable companies to accelerate the creation of digital content for internal and external audiences while optimizing costs, Adobe says.
Generative AI can create content, including written articles, images, videos, and music, from simple descriptive phrases. Artificial intelligence systems analyze and process huge amounts of data to create new works.
ADBE Stock News: Firefly for Corporates Coming Soon
The new Adobe Firefly for Enterprise offering will be available in the second half of 2023.
Firefly’s first model, launched in March, is trained on Adobe Stock images, open-licensed content, and other public domain content whose copyright has expired.
In addition, Adobe plans to allow companies to train Firefly individually with their own branded assets. This allows companies to generate content in the unique style of their brand.
Also on Thursday, Adobe announced new generative AI capabilities for its Adobe Experience Cloud, its customer experience management platform.
ADBE share receives price target increases
In the stock market today, ADBE shares rose 5% to close at 439.03. According to IBD MarketSmith charts, ADBE stock is approaching a buy point of 451.15 from a cup basis.
Meanwhile, Wall Street analysts have twice raised ADBE’s target price.
Piper Sandler analyst Brent Bracelin on Wednesday increased his price target on ADBE stock to 500 from 415. He also reiterated an overweight/buy rating.
“We have growing confidence in our bull case on ADBE,” Bracelin said in a note to clients. He noted “an accelerated pace of innovation, evidenced by new Gen AI capabilities being built into Acrobat, Express, Photoshop and Premiere Pro.”
On Thursday, Deutsche Bank analyst Brad Zelnick raised his price target on ADBE shares to 500 from 430 and maintained his Buy rating. He expects Adobe to match Wall Street’s estimates when the company reports second-quarter results on June 15.
Follow Patrick Seitz on Twitter at @IBD_PSeitz For more stories on consumer technology, software, and semiconductor stocks, click here.
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