Deutsche downgrades Adobe on lack of AI monetization

Deutsche Bank last night downgraded Adobe (ADBE) to Hold from Buy with a price target of $475, down from $600. The firm believes Adobe will continue to build traction with Firefly and other generative artificial intelligence offerings, but expects the stock to remain range-bound until that momentum positively inflects in the financials. Though Adobe management commentary has continued to exalt the positives and potential of Firefly, “we have yet to see the impact on the financials,” the analyst tells investors in a research note.