Why Are Adobe Shares Trading Higher? Morgan Stanley Likes Firefly
Portfolio Pulse from AJ Fabino
Shares of Adobe Inc (NASDAQ:ADBE) are trading more than 3% higher after Morgan Stanley (NYSE:MS) upgraded the stock from Equal-Weight to Overweight and raised the price target from $510 to $660. The upgrade reflects Morgan Stanley's growing confidence in Adobe’s growth potential, particularly its ability to capitalize on advancements in Generative AI (GenAI). Adobe's GenAI is expected to drive product innovation and improve the integration of functionality into existing workflows. Morgan Stanley also revised its predictions for Adobe’s earnings, suggesting a Compound Annual Growth Rate (CAGR) of 17% for Adobe’s EPS from fiscal 2022 to fiscal 2025.
July 31, 2023 | 3:19 pm
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NEUTRAL IMPACT
Morgan Stanley upgraded Adobe's stock from Equal-Weight to Overweight and raised the price target, reflecting the bank's growing confidence in Adobe’s growth potential.
While the news is about Morgan Stanley's actions, it is not directly about the bank itself or its performance. Therefore, the impact on Morgan Stanley's stock is likely to be neutral in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Adobe's stock is trading higher following an upgrade by Morgan Stanley. The investment bank's confidence in Adobe's growth potential, particularly in Generative AI, is driving the upgrade. The bank also revised its earnings predictions for Adobe, suggesting a CAGR of 17% for Adobe’s EPS from fiscal 2022 to fiscal 2025.
The upgrade by Morgan Stanley reflects growing confidence in Adobe's growth potential, particularly its ability to capitalize on advancements in Generative AI. This positive sentiment is likely to drive investor interest, potentially leading to a short-term increase in Adobe's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100