Adobe price target lowered to $650 from $700 at Evercore ISI

Evercore ISI lowered the firm’s price target on Adobe to $650 from $700 and keeps an Outperform rating on the shares. While Evercore argues that the pullback in shares this morning “seems a little extreme if one is taking a longer-term view,” one of the biggest challenges for the bulls is that the fiscal year guidance now seems less likely to offer a more material upside scenario around Firefly and the benefits Adobe is seeing from Gen AI are “essentially getting masked by last year’s price increases.” Heading into the analyst day on March 26, the firm believes that addressing the pricing headwinds in a bit more detail would help shift the focus back to some of the positives of the business, Evercore added.