Adobe assumed with Market Perform from Outperform at William Blair

William Blair downgraded Adobe (ADBE) to Market Perform from Outperform without a price target after assuming coverage of the name. While the shares are “inexpensive” at 9-times free cash flow, Adobe is facing “intense” competition, particularly in its core Creative Cloud, the analyst tells investors in a research note. The firm believes the The competitive environment “raises legitimate questions about what the future looks like for Adobe.” William Blair believes the shares will be range-bound pending clarity on Adobe’s pricing power, long-term economics, right to win the AI opportunity, and the role of professional creators.