Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.
1) Adobe upgraded at Mizuho
Mizuho analysts upgraded Adobe (NASDAQ:ADBE) stock to Buy from Neutral with the price target raised by $110 to $630 per share.
“ADBE remains very well positioned to benefit from digital transformation with its highly comprehensive end-to-end offering. In addition, we see signs of improving fundamentals across Digital Media and Digital Experience, and we have rising confidence in GenAI as a significant growth driver,” the analysts wrote in a report.
2) Oracle upgraded at Barclays
Barclays analysts upgraded Oracle (NYSE:ORCL) to Overweight from Equal Weight with its price target raised to $150 per share.
“We see a multi-year opportunity for solid growth at high margins driven by an ongoing positive mix effect of better SaaS and OCI outweighing the lower growth parts of the business. OCI, partly fueled by emerging AI workloads, will be key to the database and overall story,” they wrote.
3) Dell downgraded at Barclays despite AI tailwinds
Barclays downgraded Dell Technologies (NYSE:DELL) to Underweight from Equal Weight with a $53 per share price target.
“We see challenges in the PC and Server/Storage end markets on challenging macro, and don’t think AI will be enough to offset these pressures. Valuation has moved out of near- and long-term trading ranges,” the analysts said.
4) 3 ‘cheap’ AI stocks
CLSA analysts see these three stocks as “the cheapest global AI plays.”
“We believe BUY-rated Baidu (NASDAQ:BIDU), Alibaba (NYSE:BABA) and Tencent (OTC:TCEHY) will lead China’s AI innovation. They can monetise through MaaS, model application programming interfaces (APIs) and end-to-end solutions,” they said in a client note.
“By 2026, we estimate LLMs will boost their cloud business revenues 10%. Valuations are cheap, at 9-16x 24CL adjusted PE, which only reflect their traditional businesses, making cloud a free option.”
CLSA sees 66%, 54%, and 26% in upside potential for shares of Alibaba, Tencent, and Baidu, respectively.
5) Analysts raise HubSpot price targets after AI-focused Investor Day
HubSpot Inc (NYSE:HUBS) recently held its annual Analyst Day, highlighting the theme of connection through intelligence. The company introduced several new Gen AI features that will be integrated across its platform. These features are aimed at delivering immediate value and expanding market share, with a longer-term strategy of monetization.
“Gen AI can upscale the platform, drive market share gains, and produce direct up-tiering and add-on monetization. While we continue to view HUBS as a rare example of a great markets, management, and margin story in our coverage, we walk away from the Analyst Day with even more conviction in HubSpot's strategy and vision for durable growth and profitability. We reiterate our outperform rating and raise our PT to $600 (from $580)," Wolfe Research analysts wrote in a note.
“It’s clear that AI features will go into starter, basic and enterprise editions. We believe this will drive premium mix/ASP growth. Partners attending the conference suggest strong initial interest in AI enabled content creation,” BofA analysts added.