Adobe price target lowered by $15 at TD Cowen, here’s why

TD Cowen lowered the firm’s price target on Adobe to $650 from $665 and keeps an Outperform rating on the shares after a “mixed” quarter that included a 9% beat on net new ARR that was below the 12%-13% beats of the last couple of quarters and “definitely below whisper expectations.” The FY24 guidance was below Street estimates for both the Digital Media and Digital Marketing segments, notes the firm, which thinks near-term Firefly momentum is more centered around top-of-funnel than monetization, but remains constructive on Adobe’s long-term AI positioning.