TD Cowen Cuts Adobe Target to $325 on Weak 1.5% Credit-Card Growth
TD Cowen cut its price target on Adobe to $325 from $400, citing 1.5% credit-card spending growth and a lowered 2026 growth forecast of –3%. The downgrade underscores softening momentum ahead of Q1 results despite expectations for 10% revenue and ARR growth.
1. Analyst Downgrade and Target Revision
TD Cowen lowered its price target on Adobe to $325 from $400 and maintained a Hold rating, marking a 19% target cut driven by concerns over growth prospects.
2. Softening Growth Metrics
Recent credit-card spending data showed just 1.5% year-over-year growth, down from 4–6% in prior quarters, while a partner survey trimmed Adobe’s 2026 growth outlook to –3%, highlighting near-term momentum challenges.
3. Q1 Forecasts and Technical Momentum
TD Cowen projects 10% constant-currency revenue and ARR growth for Q1, contrasting with a –12% net-new ARR consensus; Adobe shares trade 4.1% above its 20-day SMA but remain 12.8% below the 100-day, with an RSI of 55.5 and a bullish MACD.