4 big analyst picks: Adobe a buy on AI hopes, says Wells Fargo
Here is your Pro Recap of the biggest analyst picks you may have missed since Friday: upgrades at Adobe, Oracle, SentinelOne, and Disc Medicine.
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Wells calls Adobe Overweight on improving competitive position
Adobe (NASDAQ:ADBE) shares rose more than 3% on Friday after Wells Fargo upgraded the company to Overweight from Equal Weight with a price target of $525.00 (from $420.00), citing hope that generative artificial intelligence will prove to be a tailwind for the business.
Wells believes that Adobe's competitive position is firming up after a challenging year amid a less intense competitive environment due to the introduction of Adobe's AI art generator, Firefly. Wells says the product serves as a much-needed next act for Adobe and a natural extension of the company's entrenched position within digital media.
Wells also points out that the current market favors consolidators, as organizations aim to do more with less across IT. This creates new opportunities for Adobe's DM and DX platforms at the expense of point solutions and emerging marketing technology players.
Shares were recently up 1% premarket.
The company is set to report its Q2/23 earnings on Thursday after the market close.
Oracle upgraded ahead of Q4 earnings
Oracle (NYSE:ORCL) shares gained more than 3% premarket today after Wolfe Research upgraded the company to Outperform from Peerperform with a price target of $130.00, as InvestingPro reported in real time.
The upgrade is based on increased confidence and conviction that OCI will become the engine that accelerates top and bottom-line growth for the company over the next three years.
The company is set to report its Q4/23 earnings today after the market close.
2 more upgrades
SentinelOne (NYSE:S) shares surged more than 4% premarket today after Morgan Stanley upgraded the company to Overweight from Equalweight and raised its price target to $20.00 from $15.00.
The firm believes the market is now mispricing the inherent value of the company as a long-term share gainer and the potential for meaningful margin upside.
Raymond James upgraded Disc Medicine (NASDAQ:IRON) to Strong Buy from Outperform and raised its price target to $75.00 from $50.00.
Shares jumped more than 15% on Friday after the company presented positive initial data from the phase 2 BEACON trial of Bitopertin.
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