midiman
The analyst reduced his price target for the company's stock to $280, down from $420. This represents one of the bleakest predictions for Adobe stock: analysts typically value the company's shares at $484 each, with just one additional expert monitored by FactSet advising to ‘sell’ them.
Sheikh observed that Adobe's software is encountering significant competition from platforms like Sora, Veo, Imagen, Runway, and Midjourney, which enable the creation of graphic content through AI. He predicts that AI will soon play a greater role in editing and managing processes, raising doubts about the company's pricing strategy.
Consequently, the expert suggests that Adobe's free cash flow growth rate may decelerate to 8% in 2026 and further to 3% by 2030.
The analyst suggests that Adobe can enhance its competitive edge by obtaining a sophisticated model for image generation and by more vigorously training its own AI, Firefly, using a broader data set. He also considers the option of selling the whole company to an external investor.
source: marketwatch.com
Sheikh observed that Adobe's software is encountering significant competition from platforms like Sora, Veo, Imagen, Runway, and Midjourney, which enable the creation of graphic content through AI. He predicts that AI will soon play a greater role in editing and managing processes, raising doubts about the company's pricing strategy.
Consequently, the expert suggests that Adobe's free cash flow growth rate may decelerate to 8% in 2026 and further to 3% by 2030.
The analyst suggests that Adobe can enhance its competitive edge by obtaining a sophisticated model for image generation and by more vigorously training its own AI, Firefly, using a broader data set. He also considers the option of selling the whole company to an external investor.
source: marketwatch.com