Here Is Why Analysts Are Slashing Adobe Inc. (ADBE)'s Price Targets

Adobe Inc. (NASDAQ:ADBE) is among the 10 Best Money Making Stocks to Invest In. The stock has seen a series of price target reductions over the past month from several analysts.

On September 11, Citigroup lowered ADBE’s share price target to $400 from $450, citing risks around the company’s pricing strategy in the medium term. However, the firm maintained its Neutral rating for the stock.

This was followed by Piper Sandler’s adjustment on Adobe Inc. (NASDAQ:ADBE) a day later. The firm cut the stock’s price target to $470 from $500, while maintaining an Overweight rating for its shares. The reduction was driven by lower growth assumptions and a 2029 EV/free cash flow multiple of 22x based on uncertainty around AI.

More recently, on September 24, Morgan Stanley downgraded Adobe Inc. (NASDAQ:ADBE) to Equal-Weight from Overweight and slashed its price target to $450 from $520. Analyst Keith Weiss pointed out a growing gap between the company’s promises about AI and the revenue numbers that were showing up in its Digital Media ARR.

Adobe Inc. (NASDAQ:ADBE)’s share price has slumped 19% year-to-date.

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