Goldman, BMO, and Jefferies Downgrade Adobe (ADBE)

Core Viewpoint - Adobe Inc. has recently faced multiple downgrades from major financial institutions, indicating concerns over its near-term revenue and earnings growth potential [1][2][3][4]. Group 1: Downgrades and Price Targets - Goldman Sachs downgraded Adobe from Buy to Sell, setting a price target of $290, citing lower expected revenue growth of 10% compared to the 11% average of peers [1][2]. - BMO Capital downgraded Adobe from Outperform to Market Perform, reducing its price target from $400 to $375, highlighting rising competitive dynamics in the creative market [3]. - Jefferies also downgraded Adobe from Buy to Hold, lowering its price target from $500 to $400, pointing out increased competition in the lower-end market segment [4]. Group 2: Financial Performance and Competition - Adobe's near-term revenue growth is projected at 10%, which is below the average growth rate of its peers [2]. - The expected EPS growth for Adobe is 10%, significantly lower than the 18% average for its competitors, raising concerns about potential earnings pressure [2]. - The competitive landscape is intensifying, particularly with the availability of AI-powered alternatives to Adobe's Creative Cloud suite, which may impact its market position [4]. Group 3: Company Overview - Adobe Inc. is recognized as a global leader in digital media and marketing solutions, providing tools and services for content creation, publication, and promotion [5].