Analysts are downgrading Adobe Inc. (ADBE), Here's What You Should Know

​Adobe Inc. (NASDAQ:ADBE) is one of the Profitable SaaS Companies for 2026. Analysts are downgrading Adobe Inc. (NASDAQ:ADBE) over concerns that AI might destroy the company’s business. The share price has fallen more than 42% over the past 12-months.

​Recently, on February 9, Ben Reitzes from Melius Research reiterated a Sell rating on the stock and lowered the price target from $310 to $270. Earlier on January 12, Gabriela Borges from Goldman Sachs downgraded Adobe from Buy to Sell with a $290 price target.

​Earlier, Reitzes from Melius had noted that the SaaS companies are at risk of being taken over by AI. The analyst highlighted that software companies can face multiple contractions as AI progresses. He pointed out that the Figma IPO has increased competition for Adobe amidst AI threats.

​In addition, Borges from Goldman based his cautious outlook on Adobe’s relatively weaker growth metrics compared to peers. He noted that the company shows 10% (next twelve months) revenue growth and 10% EPS growth as compared to 11% growth and 18% growth for its peers, respectively. This places Adobe at the bottom quartile for PEG valuation.

​Overall, Wall Street’s 12-month median price target still reflects more than 50% upside from the current level, with 55% analysts covering the stock maintaining a Buy rating.

​Adobe Inc. (NASDAQ:ADBE) is a global technology company that creates tools to help people and businesses design, manage, and deliver digital content.

While we acknowledge the potential of ADBE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.