Adobe price target raised to $640 from $600 at BMO Capital

BMO Capital raised the firm’s price target on Adobe to $640 from $600 and keeps an Outperform rating on the shares. The firm is “confident” that generative AI can help Adobe grow net new annual recurring revenue over the next several years, which should support durable mid- to low-teens revenue growth, the analyst tells investors in a research note. Adobe’s strategy will likely include price increases of 10% to 15%, though lower at the consumer level, and adding new users in all categories, BMO added.