Morgan Stanley analyst Keith Weiss downgraded Adobe (ADBE) to Equal Weight from Overweight with a price target of $450, down from $520. The firm believes the company’s decelerating Digital Media annual recurring revenue has created “outsized” concern on its ability to prove generative artificial intelligence is expansive to its total opportunity. As a result, Morgan Stanley sees “cleaner” near-term stories elsewhere in the software-as-a-service group.
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