Adobe Inc. (ADBE)'s Upside Potential at 71% Despite Recent Price Target Reductions

Shares fell sharply in response to the development, slumping 4.61% on Monday to close at $246.68. Jefferies’ update follows HSBC’s adjustment on the stock on February 13, when it cut the price target to $302 from $388 with a Hold rating. The bank said it anticipates AI-powered tools to pose a competitive risk to the company over the medium to long term.

Earlier in the month, on February 3, Piper Sandler downgraded Adobe Inc. (NASDAQ:ADBE) to Neutral from Overweight and cut its price target to $330 from $470.

Despite recent price target reductions, the stock sports a Moderate Buy rating with an average share price upside potential 70.9%, as of the close on February 23.

Adobe Inc. (NASDAQ:ADBE) is a global technology company that offers a range of web design tools, digital art, content creation, and related services. It is best known for its Adobe Acrobat and Photoshop image-editing tools.

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