Adobe price target lowered to $660 from $690 at BMO Capital

BMO Capital analyst Keith Bachman lowered the firm’s price target on Adobe (ADBE) to $660 from $690 and keeps an Outperform rating on the shares ahead of its Q1 results this week. Having conducted its fifth survey focused on Adobe’s Creative Cloud, the firm states that while trends are generally positive for Firefly, increasing competition trends from Microsoft (MSFT) and Canva are “concerning”. With Firefly and Adobe Express, Adobe can effectively compete in the prosumer category as well as gain more enterprise seats, though BMO does not think Adobe will effectively compete in consumer areas and that the emerging LLM tools will likely be very effective in this category, the analyst tells investors in a research note.