Rothschild & Co Redburn downgraded Adobe (ADBE) to Sell from Neutral with a price target of $280, down from $420. Adobe’s moat is being eroded by genAI and low-end disruption is likely to intensify, argues the analyst, who sees this continuing to put pressure on the multiple in the near-term as investors question Adobe’s terminal value. In the absence of a strategic shift, the firm believes free cash flow growth will continue to slow to low single digits by 2030, the analyst added.
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