Adobe price target lowered to $525 from $600 at Stifel

Stifel lowered the firm’s price target on Adobe (ADBE) to $525 from $600 and keeps a Buy rating on the shares. Adobe results were “largely positive,” with net-new Digital Media ARR in line with a muted outlook, bookings and profitability metrics coming in ahead of expectations and full-year guidance maintained, the analyst tells investors. The “larger consideration” was incremental disclosures around AI that addressed current points of debate, which included an AI ARR figure of $125M and segmented results that show non-professionals are growing faster than company average at 15%, says the analyst. The firm views the disclosures as “toe in the water” of a much deeper AI discussion next week at the company’s Summit investor day, the analyst added.