JPMorgan lowered its price target for Adobe to $315 from $340. The bank maintained its Overweight rating on the stock. This adjustment follows fiscal third-quarter earnings that modestly exceeded expectations.
JPMorgan cited concerns regarding the pace of monetization for Adobe’s AI products. The bank noted a softer-than-expected fourth-quarter revenue forecast. This outlook comes despite strong growth in AI user engagement. Remaining performance obligations (RPO) also showed slower growth.
Adobe is currently prioritizing user acquisition through freemium models. The company deferred some price hikes, creating uncertainty about when AI users will drive significant revenue.