KeyBanc downgraded Adobe (ADBE) from 'Sector Weight' to 'Underweight.' The firm issued a new price target of $310. This action follows the company’s report of strong fourth-quarter 2025 results less than a week prior.
KeyBanc expressed concerns regarding Adobe’s guidance. The forecast indicated flat net-new Annual Recurring Revenue (ARR) for 2026. Furthermore, the guidance forecasted contraction in EBIT margins.
BMO Capital echoed this bearish outlook. BMO lowered its price target on ADBE to $400, down from $405. The firm cited ongoing competitive challenges.
These challenges stem specifically from AI applications and lower-end user tools. These analyst actions introduce a cautious tone following an otherwise solid quarterly performance, where Adobe’s revenue grew 10.5% year-over-year.