According to CNBC, Citi downgraded Adobe to sell from neutral and lowered its price target to $207 from $250, implying roughly 16% downside from Tuesday’s close. The bank sees downside risk to consensus growth estimates into fiscal year 2027, as Adobe prioritizes longer-term strategic changes that could weigh on near-term growth. Analyst Tyler Radke said rising competition from AI-integrated software services and macroeconomic uncertainty could add pressure. Citi expects Adobe’s annual recurring revenue to grow roughly 5% year over year through fiscal 2028, 200 to 300 basis points below analysts’ consensus estimate. Incoming CEO Anil Chakravarthy is set to take the role in December amid leadership vacancies. Adobe shares have fallen about 30% year to date.