Baird Slashes Adobe (ADB) PT to $350 Amid AI Competition, Growth Hurdles

Group 1 - Adobe Inc. is considered one of the most undervalued large-cap stocks currently available for investment, with a recent price target reduction from Baird to $350 from $410 while maintaining a Neutral rating [1] - Oppenheimer downgraded Adobe from Outperform to Perform, citing that expected AI-driven growth in the Digital Media business has not materialized, leading to decelerating growth in FY2025 [2] - Goldman Sachs initiated coverage of Adobe with a Sell rating and a price target of $290, noting that while AI adoption is a long-term positive for the software industry, Adobe's high-end seat count is under pressure due to value shifting to the lower end of the market [3] Group 2 - Adobe operates as a technology company globally and has formed a strategic alliance with HUMAIN for the development of generative AI models and AI-powered applications [4] - Despite recognizing Adobe's potential as an investment, some analysts believe other AI stocks present greater upside potential and carry less downside risk [5]