“My Top 10 Stocks to Buy Right Now in September”
Adobe is a buy with >20% upside to $351; high switching costs outweigh AI competition and CEO uncertainty.
The next stock I'll highlight is Adobe, a business that was beaten down as a result of the SAS apocalypse earlier this year, but shares are recovering. Still, I calculated an upside of over 20% for Adobe stock as I calculated a fair value at $351 and a market price of $292.
One of the reasons why I'm optimistic about Adobe is because of the high switching cost. Even if enterprises find an attractive substitute utilizing artificial intelligence that might cost the company less after they switch, the cost of switching is so elevated to switch their entire business process away from Adobe and into a new system is costly for organizations that have been using Adobe for years or even decades.