Adobe price target lowered to $528 from $605 at BofA

BofA analyst Brad Sills lowered the firm’s price target on Adobe (ADBE) to $528 from $605 and keeps a Buy rating on the shares. Q1 results and the FY25 outlook were “solidly in line,” says the analyst. However, “what stands out to us” is the progress with key growth initiatives, adds the analyst. ARR form AI products of $125M represents just under 1% of total digital media ARR, but the company said this number is expected to double by FY25, suggesting that Firefly service monetization “should only ramp from here,” BofA says in its earnings recap note.