Goldman Sachs Assumes Coverage of Adobe (ADBE) With Sell Rating, $290 PT

Adobe Inc. (NASDAQ:ADBE) is one of the cheap S&P 500 stocks to invest in now. On January 12, Goldman Sachs assumed coverage of Adobe with a Sell rating and $290 price target. This announcement was made as Goldman Sachs initiated coverage on 12 software names. The firm gave Adobe a Sell rating and warned that high-end user growth is stalling as competition intensifies at the lower end of the market. Adobe’s lack of exposure to this budget-friendly, high-value tier is a primary concern for its 2026 performance.

For the full year 2025, Adobe Inc. (NASDAQ:ADBE) achieved a total annual revenue of $23.77 billion, which was an 11% year-over-year growth. This performance was supported by a non-GAAP EPS of $20.94, which was a 14% increase from the previous year. For Q4 alone, Adobe posted revenue of $6.19 billion, which was a 10% increase year-over-year. The company reported a 3x increase in generative credit consumption quarter-over-quarter, driven by the integration of AI across its suite. New products like Firefly and the Acrobat AI Assistant contributed to a 15% growth in monthly active users.

Partnerships with tech giants such as AWS, Azure, Google, and Microsoft have further expanded Adobe’s AI ecosystem. Specifically, Firefly Foundry and GenStudio are being used by enterprises to create custom, on-brand AI models, significantly increasing content production efficiency and ROI. Adobe also highlighted its pending $1.9 billion acquisition of Semrush, a move intended to consolidate its leadership in brand visibility and Generative Engine Optimization/GEO.

Adobe Inc. (NASDAQ:ADBE) operates as a technology company worldwide. The company has a strategic alliance with HUMAIN for the development of GenAI models and AI-powered applications.

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Disclosure: None. This article is originally published at Insider Monkey.