Investment firm Morgan Stanley believes that Adobe’s (ADBE) recent pricing changes to its Creative Cloud All Apps in North America could boost the company’s 2025 revenue growth by 1.5% to 2%. Indeed, five-star analyst Keith Weiss noted that while these changes are already included in the software company’s 2025 guidance, there is a strong potential for even more growth in 2026, especially as the benefits continue into the first half of that year and the company looks to expand the new pricing model to other regions.
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It is worth noting that Adobe introduced a new tiered pricing structure for individual users. The standard plan price was lowered by 8% to 9%, while the pro plan saw a price hike of 17% to 18%. The student and teacher plan was also adjusted with a 14% price increase. Weiss explained that this aligns with Adobe’s strategy to focus on growing its high-end offerings while staying flexible with lower-priced options in a more competitive market.
Looking ahead, Weiss said that Adobe could see another 1.6% boost from renewals through Fiscal Year 2026, and an additional 2.2% from applying the price changes to markets outside of North America. Interestingly, he views the move as a smart way to support innovation in premium products and capture more value, while adjusting standard pricing as needed. As a result, Weiss kept his Overweight rating and $510 price target on the stock.
Is ADBE Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ADBE stock based on 21 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average ADBE price target of $511.62 per share implies 22.1% upside potential.
