Citi cuts Adobe's PT on expected margin pressure, higher AI spend

Citi cuts Photoshop creator Adobe's ADBE.O PT to $366 from $400, still implying an upside of 12% to stock's last close

Brokerage expects Co to beat Q4 ests, noting the decision to stop reporting annualized recurring revenue for Document Cloud, its digital document and workflow manager, which Citi says suggests slowing growth in digital media

Brokerage flags rising competition for Creative Cloud, with margins expected to shrink slightly as ADBE ups investment in in-house AI and third-party LLMs

Average rating of 40 analysts is "buy," their median PT is $460 - data compiled by LSEG

Up to last close, ADBE has fallen 26.5% this year