Adobe price target lowered to $625 from $685 at DA Davidson

DA Davidson analyst Gil Luria lowered the firm’s price target on Adobe (ADBE) to $625 from $685 but keeps a Buy rating on the shares. The company reported better than expected Q4 results with top and bottom line beats relative to consensus, and the management provided positive AI commentary, noting however that AI monetization is still “early and ongoing”, the analyst tells investors in a research note. Adobe’s FY25 outlook came in lighter than anticipated with implied revenue growth of about 9%, though that guidance is likely “conservative” given the various growth levers the company has to monetize the value provided to enterprises and proliferate its freemium offerings, the firm added.