Investing.com — Stifel and UBS analysts wrote in a note Wednesday that Adobe’s annual MAX user conference in Los Angeles highlighted the company’s growing role as a central platform for creative AI.

Stifel told investors that Adobe has solidified itself as the “creative operating system for years to come,” with “a longer-than-usual three-hour MAX keynote and subsequent investor session” featuring generative AI.

The company believes that generative AI adoption in the creative sector is “far ahead of other industries,” noting that Adobe is strengthening its position in “web and mobile development” and its partnerships with leading model providers.

Stifel maintained its buy rating and $480 price target on the stock and said it expects Adobe’s position as the “creative system of record for the enterprise” to remain sustainable.

UBS also emphasized that Adobe is focused on expanding its partnerships and AI capabilities, including “adding more AI features to the suite (e.g., Firefly video editor) and embedding Express in ChatGPT.”

However, it noted a lack of transparency, saying that Adobe “will cease providing segment-level ARR disclosures after the quarter” and will only report total ARR going forward.

However, UBS noted that “while any disclosure loss would be negative, it is in Adobe’s favor, as not all large-cap SaaS competitors report segment-level ARR or revenue.”

The bank added that AI workloads “carry more COGS, and GM will decline by ‘a few percentage points’ over time,” but that this should be offset by cost control and efficiency gains.

It noted positive feedback from users fully utilizing AI tools, but noted that revenue growth from AI is still in its early stages. UBS maintained its neutral rating and $375 price target on the stock.