BMO Capital lowered the firm’s price target on Adobe (ADBE) to $405 from $450 and keeps an Outperform rating on the shares. The company’s Q3 included solid performance, such as raising FY26 ARR guidance and embedding the potential for net new annual recurring revenue to increase y/y in the November quarter, though questions surrounding durable growth will likely persist, including how will Adobe try and more fully optimize AI in FY26 to drive revenue growth rather than user adoption, the analyst tells investors in a research note. BMO adds however that it retains its positive rating on the stock due to valuation.
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