Bank of America raised its price target on Adobe to $220 from $190. The firm cited broad-based multiple expansion in the software sector. It also noted easing concerns about artificial intelligence disruption. However, Bank of America maintained its Underperform rating on the shares. The analyst's fundamental views and estimates for the company remain unchanged.
Several institutional investors have been increasing their positions in Adobe. Recent filings show Danica Pension Livsforsikringsaktieselskab acquired new stakes. Meeder Advisory Services Inc. also acquired new stakes. Adobe stock increased in price during the previous session. Some analysts attribute this to a broader rotation into established software names.