Here Is Why Analysts Are Slashing Adobe Inc. (ADBE)’s Price Targets

Adobe Inc. (NASDAQ:ADBE) is among the 10 Best Money Making Stocks to Invest In. The stock has seen a series of price target reductions over the past month from several analysts.

Here Is Why Analysts Are Slashing Adobe Inc. (ADBE)'s Price Targets

On September 11, Citigroup lowered ADBE’s share price target to $400 from $450, citing risks around the company’s pricing strategy in the medium term. However, the firm maintained its Neutral rating for the stock.

This was followed by Piper Sandler’s adjustment on Adobe Inc. (NASDAQ:ADBE) a day later. The firm cut the stock’s price target to $470 from $500, while maintaining an Overweight rating for its shares. The reduction was driven by lower growth assumptions and a 2029 EV/free cash flow multiple of 22x based on uncertainty around AI.

More recently, on September 24, Morgan Stanley downgraded Adobe Inc. (NASDAQ:ADBE) to Equal-Weight from Overweight and slashed its price target to $450 from $520. Analyst Keith Weiss pointed out a growing gap between the company’s promises about AI and the revenue numbers that were showing up in its Digital Media ARR.

Adobe Inc. (NASDAQ:ADBE)’s share price has slumped 19% year-to-date.

While we acknowledge the risk and potential of ADBE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ADBE and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: Renaissance Technologies Portfolio: 10 Biggest Stocks and 12 Best Defense Stocks to Buy Right Now.

Disclosure: None.