Adobe Stock Rated 'Hold' by Zacks Amid AI Competition and Valuation Concerns, Despite Positive Guidance

Zacks analysts reiterated a 'Hold' rating on Adobe (ADBE), citing stiff AI competition and a stretched valuation despite the company's strong fiscal 2026 revenue guidance.

• The 'Hold' rating follows an 8.8% drop in the stock price over the previous three months.
• The firm noted that the stock faces a stretched valuation, currently trading at 10.95X price-to-book.
• Positive drivers include fiscal 2026 revenue guidance set between $25.9 billion and $26.1 billion, fueled by expanding AI initiatives such as Firefly and Acrobat AI Assistant.