Adobe's stock faced headwinds from Wall Street analysts on December 15, 2025, despite the company recently reporting strong fourth-quarter results that beat expectations. KeyBanc downgraded Adobe from Sector Weight to Underweight, setting a price target of $310. Separately, BMO Capital maintained its Outperform rating but lowered its price target from $405 to $400.
The analyst adjustments stem from concerns about increasing competition and Adobe's future growth trajectory. KeyBanc specifically cited worries over the company's guidance. This guidance pointed to flat net-new Annual Recurring Revenue (ARR) for 2026 and projected contracting EBIT margins.
BMO also highlighted ongoing competitive challenges. These concerns centered particularly on lower-end users and the impact of artificial intelligence applications.
In separate news, Adobe announced a deepened collaboration with Amazon. The partnership aims to reshape creativity and marketing in the AI era.