JPMorgan lowers Adobe target to $340
Adobe reported record sales for its May quarter, beating earnings estimates.
The company lifted its full-year guidance but expects to grow more slowly this year.
JPMorgan reset its Adobe target to $340 from $420 due to the company’s AI strategy.
Adobe’s organic annual recurring revenue growth forecast was lowered by about 2 percentage points to roughly 10.2% from 12.2%, with the company giving up subscription dollars for a larger long-term AI opportunity, resulting in a $6.62 billion reduction in expected revenue, and its stock fell to its lowest level in a year, with shares trading at $5.96, down from $27.10 billion in market value, and a $500 million loss in market capitalization.