BMO Capital Markets downgraded Adobe Inc. (ADBE) from "Outperform" to "Market Perform." The firm also reduced its price target for the stock to $375, down from the previous $400.
BMO cited findings from a survey on Adobe’s Creative Cloud, which pointed to increased competition. This move reflects a cautious outlook on the software giant’s near-term growth prospects.
Following the announcement, Adobe’s shares traded marginally lower in premarket activity.
Despite the downgrade, other market commentary suggests Adobe holds potential for a rebound in 2026 following a difficult 2025. Analysts highlighted the company's strong past sales growth and its current position within the AI sector.