Adobe (NASDAQ: ADBE) shares rose in pre-market trading Thursday. HSBC upgraded the software company to Buy from Hold. The bank increased its price target to $308 from $282.
HSBC analysts believe investor concerns regarding generative AI competition are excessive. The bank found little evidence of AI-native rivals disrupting Adobe’s business.
Adobe reported a 12.7% year-over-year revenue increase in its fiscal second quarter. This growth indicates sustained customer adoption of AI-enabled products.
HSBC raised earnings estimates for fiscal years 2026 through 2028. The bank cited solid operational momentum and an ongoing share buyback program.