Adobe price target lowered to $600 from $650 at Stifel

Stifel analyst J. Parker Lane lowered the firm’s price target on Adobe (ADBE) to $600 from $650 and keeps a Buy rating on the shares. Despite “strong momentum exiting” the fiscal year that was visible in Digital Media and Digital Experience results, FY25 guidance failed to meet sell-side revenue expectations, driven by a softer Digital Media outlook than expected, the analyst tells investors. The firm believes the “plausible expectations” around genAI monetization and pricing actions may have driven FY25 numbers higher coming into the quarter, arguing that Adobe bringing higher-tiered offerings to market could drive ARPU growth, rather than direct pricing actions.