Overview

• On September 26, Evercore ISI’s Kirk Materne reiterated a Buy rating on Adobe with an unchanged $450 price target.
• Materne contends the stock’s valuation already reflects uncertainty and that sentiment will turn only with demonstrated AI-led growth and clearer competitive positioning.
• Morgan Stanley and Mizuho downgraded Adobe to Hold on September 24 and cut their price targets to $450 from $520, citing slower-than-expected AI monetization.
• Adobe’s Q3 FY2025 results exceeded most metrics, but analysts remain divided on how quickly new generative AI features will translate into recurring revenue.
• Evercore had previously trimmed its target from $475 to $450 on September 12 following Q3 results, underscoring the need for visible acceleration in Digital Media ARR.