Adobe downgraded to Hold from Buy at TD Cowen

TD Cowen downgraded Adobe (ADBE) to Hold from Buy with a price target of $550, down from $625. The company’s Q4 net new annual recurring revenue beat guidance by 5%, its lowest beat since Q4 of 2022, and the fiscal 2025 guide of 8%-10% was below Street, the analyst tells investors in a research note. The firm says Adobe’s prioritization of artificial intelligence adoption over monetization is leading to continued growth deceleration trends, with potential to fall into single digits. Adobe’s pricing tailwinds will fade next year, new go-to-market changes in Q1 carry some disruption risk and recent checks were more mixed, contends TD.