Adobe Inc's stock fell by 5.00% during regular trading, hitting a 5-day low. This decline occurred despite the Nasdaq-100 rising by 0.41% and the S&P 500 gaining 0.25%, indicating a potential sector rotation.
The drop in Adobe's stock price can be attributed to the competitive pressures in the AI space, particularly following its recent partnership with Runway for next-gen AI video solutions. While this strategic partnership aims to enhance Adobe's position in the creative industry, the market's reaction has been cautious, reflecting concerns over competition and the company's ability to maintain its growth trajectory.
Despite the current stock decline, Adobe's fundamentals remain strong, as evidenced by its high ratings under Warren Buffett's investment strategies. This suggests that long-term investors may still find value in Adobe, potentially leading to a recovery in its stock price as market conditions evolve.
Wall Street analysts forecast ADBE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADBE is 454.52 USD with a low forecast of 310.00 USD and a high forecast of 660.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
Wall Street analysts forecast ADBE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ADBE is 454.52 USD with a low forecast of 310.00 USD and a high forecast of 660.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Buy
6 Hold
1 Sell
Moderate Buy
Current: 304.720
Low
310.00
Averages
454.52
High
660.00
Current: 304.720
Low
310.00
Averages
454.52
High
660.00
UBS
Neutral
downgrade
$375 -> $340
2026-01-26
New
Reason
UBS
Price Target
$375 -> $340
AI Analysis
2026-01-26
New
downgrade
Neutral
Reason
UBS lowered the firm's price target on Adobe to $340 from $375 and keeps a Neutral rating on the shares.
BMO Capital
Outperform -> Market Perform
downgrade
$400 -> $375
2026-01-09
Reason
BMO Capital
Price Target
$400 -> $375
2026-01-09
downgrade
Outperform -> Market Perform
Reason
BMO Capital downgraded Adobe to Market Perform from Outperform with a price target of $375, down from $400. The firm's creative cloud survey indicates creative market competitive dynamics are increasing, particularly in smaller businesses, students, and freelancers. While Adobe's valuation is "undemanding," BMO does not see positive catalysts and thinks the shares will remain range-bound, the analyst tells investors in a research note.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for ADBE
Unlock Now
Jefferies
Hold -> Buy
upgrade
$300 -> $360
2026-01-04
Reason
Jefferies
Price Target
$300 -> $360
2026-01-04
upgrade
Hold -> Buy
Reason
Jefferies upgraded IBM to Buy from Hold with a price target of $360, up from $300. The firm adjusted ratings in the software sector as part of its "playbook" for 2026. Investors should stay underweight software as growth slows and lags other sectors like semiconductors, the analyst tells investors in a research note. Jefferies believes 2026 will be another year of "gradual" artificial intelligence monetization, with more meaningful growth needed to ease disintermediation fears. The firm prefers infrastructure over applications in the first half of the year, but believes negative application sentiment "is not grounded in realities." Applications sentiment should improve in the back half the year, Jefferies contends. To reflect this, the firm upgraded IBM and downgraded Adobe to start off the year.
Jefferies
Buy
to
Hold
downgrade
$500 -> $400
2026-01-04
Reason
Jefferies
Price Target
$500 -> $400
2026-01-04
downgrade
Buy
to
Hold
Reason
Jefferies downgraded Adobe to Hold from Buy with a price target of $400, down from $500. The firm adjusted ratings in the software sector as part of its "playbook" for 2026. Investors should stay underweight software as growth slows and lags other sectors like semiconductors, the analyst tells investors in a research note. Jefferies believes 2026 will be another year of "gradual" artificial intelligence monetization, with more meaningful growth needed to ease disintermediation fears. The firm prefers infrastructure over applications in the first half of the year, but believes negative application sentiment "is not grounded in realities." Applications sentiment should improve in the back half the year, Jefferies contends. To reflect this, the firm upgraded IBM and downgraded Adobe to start off the year.
About ADBE
Adobe Inc. is a global technology company. The Company's products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. Its segments include Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment is centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop and other products, offering a variety of tools for creative professionals, communicators and other consumers. The Digital Experience segment provides an integrated platform and set of products, services and solutions through Adobe Experience Cloud. The Publishing and Advertising segment contains legacy products and services. In addition, its Adobe GenStudio solution allows businesses to simplify their content supply chain process with generative artificial intelligence (AI) capabilities and intelligent automation.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
