Adobe falls after company names insider Anil Chakravarthy as CEO

Shares of Adobe ADBE.O down 3.28% at $276.39 in pre-market trading on Friday after the company named insider Anil Chakravarthy as successor to long-time CEO Shantanu Narayen.

Narayen, CEO for more than 18 years, will transition to the role of executive chair.

Chakravarthy will take charge as Adobe faces rising competition from AI rivals and seeks to reassure investors.

The company is also searching for a permanent finance chief after Dan Durn's exit in June.

Shares have fallen about 18.4% year to date, versus a 14.4% rise for the Nasdaq .IXIC.

Thirty-nine analysts rate the stock "hold" on average; the median price target is $255, according to data compiled by LSEG.

The stock recently traded at 11 times expected earnings, versus its five-year average forward price-to-earnings ratio of 24, suggesting shares may be undervalued, per LSEG-compiled data.