Adobe price target lowered to $365 from $425 at Morgan Stanley

Morgan Stanley analyst Keith Weiss lowered the firm’s price target on Adobe (ADBE) to $365 from $425 and keeps an Equal Weight rating on the shares. Despite significant portfolio expansion for AI capabilities and an early shift to monetization, investors likely need firmer evidence of a growth re-acceleration and/or material positive revisions to the forward outlook to ease concerns on AI competition and “get back on-board,” says the analyst, whose largely unchanged forward forecasts are met with meaningful compression in the peer multiple