Shares of Adobe Systems (NASDAQ:ADBE) climbed after the company announced innovations that bring generative AI into its creative and enterprise applications. The product updates were announced earlier today at the Adobe Summit EMEA 2023.
As part of this new offering, Adobe said users will be able to access Firefly, its family of creative generative AI models, through the standalone Firefly application, Adobe Express and Creative Cloud, and Adobe plans to enable businesses to be able to custom train Firefly with their own branded assets.
Adobe will also offer IP indemnity for content generated by certain Firefly-powered workflows.
Piper Sandler research analysts said, “The pace of innovation has clearly accelerated since the Firefly reveal in late March with new Gen AI features getting weaved into Acrobat, Express, Photoshop and Premiere Pro during May alone.”
Piper Sander said it has increasing conviction in its bull theses on Adobe and raised its price target on the stock from $415 to $500.
The increased price target highlighted the accelerating pace of innovation evident by new Gen AI features getting weaved into more products, along with strong third-party data that shows improving Adobe.com demand metrics.
“Based on healthy 3P data and an accelerating pace of innovation, we increase revenue and EPS estimates for this year and next,” wrote the analysts.
Shares of Adobe climbed over 5% Thursday morning.