{
  "id": 4828110,
  "title": "Citi raises Adobe stock price target on software multiples",
  "url": "https://urgent.news/2026/09/01/citi-raises-adobe-stock-price-target-on-software-multiples",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-01T08:52:53.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/citi-raises-adobe-stock-price-target-on-software-multiples-93CH-4883635"
  },
  "original_language": "en",
  "account": "Citi has upgraded its price target for Adobe Inc. (NASDAQ:ADBE) to $301 from $228, citing increased software multiples in the market. The firm maintains a Neutral rating on the stock, with an implied EV/FCF of 10.4x and a GAAP P/E of 11.9x for FY28. Adobe's current P/E ratio is 16.79, and InvestingPro analysis suggests the stock is undervalued. Despite a 26% decline in second-half net new annual recurring revenue, Citi still sees potential in the company. While cautious about Adobe's fundamentals, the firm believes the recent 500 million dollar reduction in FY26 total ARR guidance creates an achievable scenario for Q3. Risks are expected to rise in FY27 as growth becomes more reliant on freemium strategies. Adobe's partnership with Saudi Arabia’s Ministry of Communications and Information Technology and AI firm Humain will grant over 27 million citizens and residents free access to Adobe’s AI-powered tools. HSBC upgraded Adobe's stock rating to Buy, noting its resilience against AI-powered competitors, while Morgan Stanley downgraded Adobe to Underweight, expressing concerns about AI substitution risks. CLSA initiated coverage with an outperform rating and a $300 price target. Figma’s stock surged following HSBC’s upgrade of Adobe, potentially indicating that fears of AI disrupting design software may be overstated.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}