Adobe joins Mizuho top picks list for July

Adobe (NASDAQ:ADBE) is one of the new entrants to Mizuho’s monthly compilation of top picks. The top picks list has the highest conviction ideas identified by the bank’s US analysts.

Analyst Gregg Moskowitz suggested the breadth of Adobe’s (ADBE) AI monetization is “being underappreciated” by Wall Street and it should become more apparent in H2 2024.

“We also continue to believe that ADBE will ultimately exceed its recently upwardly revised FY25 target for $1.95B in net new Digital Media ARR,” said Moskowitz, although he noted Adobe is also being viewed as an “AI loser” by many.

Mizuho’s other top picks in the technology sector were:

• Amazon (NASDAQ:AMZN) based on its AWS data warehousing and solutions ecosystem and marketplace approach for Gen-AI.
• Trip.com Group (NASDAQ:TCOM) is set to benefit from consumers shifting spending from goods to services, and continued recovery in outbound travel from China.
• Paypal (NASDAQ:PYPL) is viewed with a compelling valuation and attracting risk profile, with the new Fastlane checkout solution and stabilization in Branded Checkout trends seen as encouraging signs.
• Globant (NYSE:GLOB) was highlighted as leader in AI services, and is seen as competitively positioned to continue to gain share in next-generation GenAI, ML and data analytics technologies.
• Nvidia (NASDAQ:NVDA) is expected to maintain a 60% plus market share as the AI computing market grows fivefold over the next three years, according to Mizuho.
• Oracle (NYSE:ORCL) was highlighted for its OCI offering, which Mizuho says remains underappreciated by investors, both from a price and performance perspective.