Negative

Adobe Inc. (NASDAQ:ADBE) faces ‘Significant AI Disruption,’ as analyst Omar Sheikh downgrades stock to ‘Sell’ with a price target of $280. The firm cited generative AI tools eroding Adobe’s competitive position. Sheikh highlighted a “performance gap” with rivals like OpenAI and Google, pushing customers towards superior tools. The firm expects Adobe’s free cash flow growth to slow, valuing the stock at 12x 2026 EV/FCF. Sheikh believes the multiple deserves to contract further due to a difficult transition period. While ADBE has investment potential, other AI stocks offer greater upside with less downside risk.

Read more at Yahoo Finance: Adobe (ADBE) Faces ‘Significant AI Disruption,’ Analyst Slashes Price Target to $280