DA Davidson Reaffirms Buy on Adobe After Figma's IPO Filing

DA Davidson maintains its "Buy" rating on Adobe Inc. (NASDAQ:ADBE) with a price target of $500, citing Figma's S-1 filing and its success in making design easier and more accessible through collaborative tools. The research firm notes that both Figma and Adobe are well-positioned to benefit from the acceleration of digital products through artificial intelligence. The $500 price target represents 22 times Adobe's expected earnings per share for fiscal year 2026.

DA Davidson maintains its "Buy" rating on Adobe Inc. (NASDAQ:ADBE) with a price target of $500, citing Figma's S-1 filing and its success in making design easier and more accessible through collaborative tools [1]. The research firm notes that both Figma and Adobe are well-positioned to benefit from the acceleration of digital products through artificial intelligence.

Figma, a design software company, has filed to go public, marking a significant milestone in its journey. The company has shown resilience and innovation following the collapse of its $20 billion acquisition deal with Adobe in 2023. The failed deal led to a $1 billion breakup fee and a "crucible moment" for Figma, which reinvigorated its products and launched four new offerings at its annual Config conference in May [1].

The abandoned deal allowed Figma to continue as an independent firm and focus on its own growth trajectory. The company has now positioned itself to take advantage of the AI wave, which was not fully materialized in 2023. Figma Make, a tool allowing users to create prototypes and web apps through conversational prompts, exemplifies this integration of AI [1].

Adobe, on the other hand, is also poised to benefit from the AI revolution. The company's stock has shown steady growth, with predictions indicating a continued upward trend. According to a recent forecast, Adobe's stock price is expected to reach $1321 by the end of December 2025, with a projected change of 1.4% [3].

The AI integration and the anticipated growth of Figma and Adobe are seen as key drivers for the tech sector. The anticipated IPO of Figma is one of the most hotly anticipated events following a pullback within the tech IPO market in recent years [1]. The success of recent tech IPOs like Chime, Circle, CoreWeave, and ServiceTitan has further fueled optimism in the market [1].

In conclusion, DA Davidson's "Buy" rating on Adobe Inc. is supported by the company's strong position in the tech sector, the success of Figma's IPO filing, and the potential benefits of AI integration. The $500 price target represents a 22 times multiple of Adobe's expected earnings per share for fiscal year 2026, indicating a bullish outlook on the company's future performance.

References:
[1] https://www.businessinsider.com/figma-ipo-investors-better-outcome-adobe-deal-2025-7
[2] https://lnginnorthernbc.ca/2025/07/09/amazon-prime-day-equals-two-black-friday-says-adobe/
[3] https://longforecast.com/adbe-stock