KeyBanc downgraded Adobe (ADBE) from Sector Weight to Underweight on December 15, 2025. The firm established a price target of $310.00.
The downgrade follows Adobe’s fourth-quarter 2025 results. Although the Q4 metrics were strong, the accompanying guidance raised concerns.
KeyBanc expressed apprehension regarding the 2026 forecast. The company projects flat net-new Annual Recurring Revenue (ARR) and a contraction in EBIT margins.
The firm interpreted the market's subdued reaction to the positive earnings report as a signal. KeyBanc believes competitive pressures, particularly from generative AI, will continue to weigh on Adobe’s shares and valuation.