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Morgan Stanley cuts Adobe rating to underweight amid AI fears
The firm cut its Adobe price target by more than a third, citing uncertainty around multiple transitions and competition from AI alternatives.
Morgan Stanley lowered its rating on Adobe to underweight, adding to pressure on the software stock tied to worries that artificial intelligence could erode parts of its business.
According to MarketWatch, the bank also reduced its Adobe price target by more than a third, pointing to the company’s multiple transitions and the possibility of increased competition from AI-based alternatives.
MarketWatch said the adjustment reflects concern that AI tools could shift how customers create and edit content, potentially raising competitive threats for Adobe.