Adobe slips after Jefferies downgrades to 'hold'

Shares of Photoshop creator Adobe ADBE.O fall 0.9% to $330.36 premarket

Jefferies cuts stock rating to "hold" from "buy"; cuts PT to $400 from $500

New PT represents a 18.19% upside to the stock's last close of $333.3

Brokerage says any boost from AI hasn't shown up yet, as revenue growth has slowed since FY23 and the initial FY26 guidance continues that trend

Jefferies says heavy AI users need paid plans, but ADBE has often offered unlimited-use promotions, signaling a focus on adoption rather than monetization amid rising competition

Biggest concern for investors is long-term risk of disruption to co’s business model and uncertainty around its future - brokerage

26 of 40 brokerages rate the stock "buy" or higher, 11 "hold" and three "sell"; their median PT is $422.5 - data compiled by LSEG

As of last close, stock down 4.7% YTD