Analyst Karl Keirstead from UBS maintained a Hold rating on Adobe and decreased the price target to $290.00 from $340.00.
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Karl Keirstead has given his Hold rating due to a combination of factors, balancing Adobe’s solid fundamentals against rising risks. He notes that Adobe continues to deliver resilient revenue, margins and earnings, with double‑digit constant‑currency growth and stable ARR trends, demonstrating that the core business remains healthy despite ongoing concerns around AI disruption.
At the same time, he highlights several cautionary issues that temper the upside case, including the unexpected CEO transition, slowing net‑new ARR as Adobe leans into freemium and lower‑priced offerings, and clear AI‑driven pressure on the Stock images segment. Given these uncertainties and what he views as a fair valuation at roughly 10x projected free cash flow, he believes the shares are reasonably priced and thus maintains a Neutral stance rather than recommending more aggressive buying.
Keirstead covers the Technology sector, focusing on stocks such as Oracle, Adobe, and Microsoft. According to TipRanks, Keirstead has an average return of 11.9% and a 59.10% success rate on recommended stocks.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $365.00 price target.