It is a good opportunity to enter! JP Morgan: Adobe (ADBE.US) valuation is low, AI and price increases together build a growth moat.

Adobe Inc. (ADBE.US) is one of the high potential quality targets in the Nasdaq market. Recently, Morgan Stanley analyst Mark Murphy maintained a "buy" rating on Adobe Inc. and kept its target price steady at $540. The analyst reiterated his bullish stance on the stock, with the core rationale being Adobe's robust revenue performance. He pointed out that the company has had a strong track record of meeting or exceeding revenue expectations. As of now, Adobe is expected to achieve about 9% year-over-year revenue growth, driven mainly by the launch of new products, the implementation of artificial intelligence (AI) solutions, and price increases in its Creative Cloud subscription plan. Murphy believes that these multiple factors will further solidify Adobe's revenue base and provide continued support for its performance growth. Additionally, he emphasized that Adobe's current valuation multiples are below normal levels, indicating that it is an attractive entry point for investors. As a global technology company, Adobe's core business is to provide various software and solutions covering the entire process of digital content creation, management, and delivery. The company released its third-quarter earnings report after the market closed on September 11, giving a strong outlook for the quarter's revenue and showing that investments in artificial intelligence capabilities are paying off. Adobe's Q3 revenue, profit margins, and cash flow performance were strong, and revenue guidance was moderate. Recently, Goldman Sachs Group, Inc. also expressed a positive view on Adobe, with analyst Kash Rangan reiterating a "buy" rating and setting a target price of $570. Despite investors' doubts about the sustainability of Adobe's double-digit growth, analysts believe that artificial intelligence is a key driver that can boost the annual recurring revenue of the digital media business.