Morgan Stanley downgraded Adobe's stock rating from Overweight to Equalweight, lowering its price target from $520 to $450 due to slower-than-expected growth in Digital Media annual recurring revenue (ARR) related to generative AI. Despite a solid financial performance with a 10.67% revenue growth and a P/E ratio of 22.57, concerns were raised about the company's ability to monetize its AI advancements amidst competitive pressures. Other analysts have mixed views, with some maintaining buy ratings and optimistic targets, while others have expressed caution regarding future growth.

Morgan Stanley downgraded Adobe's stock rating from Overweight to Equalweight, lowering its price target from $520 to $450 due to slower-than-expected growth in Digital Media annual recurring revenue (ARR) related to generative AI. Despite a solid financial performance with a 10.67% revenue growth and a P/E ratio of 22.57, concerns were raised about the company's ability to monetize its AI advancements amidst competitive pressures. Other analysts have mixed views, with some maintaining buy ratings and optimistic targets, while others have expressed caution regarding future growth.