Jefferies Lowers Adobe Price Target Amid AI Monetization Concerns

Published 8 hours agoADBE

Jefferies Lowers Adobe Price Target Amid AI Monetization Concerns

Jefferies has adjusted its outlook on Adobe, reducing the price target from $700 to $650 while maintaining a 'Buy' rating, as reported by Nasdaq. The key concern for the adjustment centers around Adobe's ability to effectively monetize its generative AI technologies. While the company's strategic outlook remains positive, investors are awaiting more concrete results.

Additionally, Adobe's fiscal 2025 revenue guidance, projected to be between $23.3 billion and $23.55 billion or about 9% growth, is seen as conservative by Jefferies, according to Wall Street Jedi. Despite this cautious guidance, Jefferies notes that Adobe has a history of issuing conservative forecasts and later surpassing them.

Jefferies' commentary reflects unease over Adobe's immediate growth potential against the backdrop of a broader technological transition. Historically, Adobe has often outperformed its initial conservative guidance, indicating a possible reassurance for investors familiar with its strategic execution.

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