Goldman Sachs Assumes Coverage of Adobe (ADBE) With Sell Rating, $290 PT

Core Viewpoint - Adobe Inc. is currently viewed as a cheap stock within the S&P 500, but Goldman Sachs has initiated coverage with a Sell rating and a price target of $290, citing concerns over stalling high-end user growth and increased competition in the lower market segment [1][3]. Financial Performance - For the full year 2025, Adobe achieved total annual revenue of $23.77 billion, reflecting an 11% year-over-year growth. The non-GAAP EPS was reported at $20.94, a 14% increase from the previous year [2]. - In Q4, Adobe's revenue reached $6.19 billion, marking a 10% year-over-year increase. The company also reported a threefold increase in generative credit consumption quarter-over-quarter, driven by AI integration [2]. Strategic Developments - Adobe has formed partnerships with major tech companies such as AWS, Azure, Google, and Microsoft, enhancing its AI ecosystem. Products like Firefly Foundry and GenStudio are being utilized by enterprises to create custom AI models, improving content production efficiency and ROI [3]. - The company is pursuing a $1.9 billion acquisition of Semrush, aimed at strengthening its position in brand visibility and Generative Engine Optimization [3][4]. Market Position and Competition - Adobe's lack of exposure to budget-friendly, high-value market segments is a significant concern for its performance in 2026, as highlighted by Goldman Sachs [1][3].