Wells Fargo double-downgrades Adobe to Underweight with a $225 target

Wells Fargo analyst Michael Turrin moved Adobe from Overweight to Underweight and cut the price target to $225 from $270. The firm cited shifting AI spending priorities, near-term guidance risk and doubts about how fast free users convert to paying subscribers. Shares were indicated about 2.6% lower in pre-market trading at $236.03.

• Rating: Overweight to Underweight (a double downgrade)
• Price target cut from $270 to $225
• Pre-market move about -2.6%, to $236.03
• Reasons: AI budget priorities, near-term guidance risk, freemium conversion