Adobe price target lowered to $570 from $600 at BMO Capital

BMO Capital lowered the firm’s price target on Adobe (ADBE) to $570 from $600 but keeps an Outperform rating on the shares. The firm is citing several “disappointing” metrics in the company’s Q4 results, saying that while it had expected net new ARR – annual recurring revenue – guide to be around $1.9B, it also envisioned more upside in the quarter and did not anticipate that revenue would be guided lower for FY25 vs. estimates, the analyst tells investors in a research note. BMO adds that the firm was also “a bit surprised” that pricing will not be more of an enabler of FY25 growth, though it remains positive on the stock due to valuation.