Adobe price target lowered to $600 from $625 at Oppenheimer

Oppenheimer lowered the firm’s price target on Adobe (ADBE) to $600 from $625 and keeps an Outperform rating on the shares. The firm notes Adobe reported decent Q4 results, though net new Creative Cloud ARR only shows modest growth, and initiated FY25 guidance below expectations. Specifically, the FY25 net new Digital Media ARR is guided slightly below what the business generated in 2022-2024 per annum from less pricing benefits, continuing focus on AI user engagement over monetization growth, negative FX, and conservatism given Adobe typical beats its initial fiscal-year guidance. However, investors are likely to perceive that increasing competition in the low-end of the market and a slow monetization path for the AI technologies are also adversely impacting Adobe’s growth and guidance, Oppenheimer says.