Adobe price target lowered to $450 from $475 at Evercore ISI

Evercore ISI analyst Kirk Materne lowered the firm’s price target on Adobe (ADBE) to $450 from $475 and keeps an Outperform rating on the shares. Adobe delivered “solid” fiscal 3Q results as revenue, NNARR, and EPS all exceeded expectations and the company noted significant progress around a number of initiatives, the analyst tells investors. At the current valuation, the firm believes that the market is “already baking in a huge amount of skepticism towards Adobe’s long-term growth,” but it also acknowledges that a shift in sentiment is unlikely to happen until revenue stabilizes or the company can provide investors with new metrics that directly address some of the perceived terminal risk related to competition and AI alternatives.