From BigGo Finance · BigGo Finance · · 1m 30s
Citi Slashes Adobe Target to $207 as CEO Transition Begins
Citigroup cuts Adobe's stock target to $207 from $250, warning fiscal 2027 growth risks as new CEO takes over.
In brief
Citigroup cuts Adobe's stock target to $207 from $250, warning fiscal 2027 growth risks as new CEO takes over. Citigroup downgraded Adobe to Sell from Neutral, lowering its price target to $207 from $250 due to leadership transition risks and fiscal 2027 growth concerns. Originally reported by BigGo Finance.
Citigroup Downgrades Adobe
Citigroup downgraded Adobe to Sell from Neutral on Nov. 4 and cut its price target to $207 from $250.
CEO Transition Looms
Incoming CEO Anil Chakravarthy takes over on Dec. 1 amid vacancies in CFO and Digital Media leadership roles.
Fiscal 2027 Growth Concerns
The bank expects soft fiscal 2027 outlook when Adobe reports fourth-quarter results in early December.
Stock Reaction
Adobe shares rose roughly 1% on the downgrade and traded near $242 in early November.
Q3 Financial Results
Adobe's third-quarter revenue rose 13% to a record $6.76 billion, while adjusted net income growth slowed to about 8%.
AI Platform Expansion
Adobe expanded its CX Enterprise Coworker to AI platforms from Anthropic, Databricks, Google, OpenAI and Microsoft.
Share Price Decline
Adobe shares have fallen about 31% in 2026, down 31% so far this year.
Market Reaction
The stock barely reacted to the downgrade, trading near $242 with minimal movement.
Fiscal 2027 Outlook
Citi analyst Tyler Radke expects cautious fiscal 2027 guidance when Adobe reports fourth-quarter results.
The one thing
Citigroup downgraded Adobe to Sell from Neutral, lowering its price target to $207 from $250 due to leadership transition risks and fiscal 2027 growth concerns.
