ADBE Maintained by Piper Sandler -- Price Target Raised to $250

Adobe (ADBE) shares fell post-Q3 earnings despite beating estimates, citing forex headwinds. RPOs grew 8% YoY, the slowest since 2023. AI business ARR rose 150% but remains a small fraction of total ARR. New CEO Anil Chakravarthy will replace Shantanu Narayen. Analysts are mixed, with a mean target price of $269.70. The stock trades at 11x next fiscal year's EPS.

Adobe has appointed Anil Chakravarthy as its next president and CEO, effective December 1, 2026. He will succeed Shantanu Narayen, who will become executive chair. Chakravarthy currently leads Adobe’s Customer Experience Orchestration business and worldwide field operations. Narayen praised Chakravarthy’s leadership and experience in AI-driven growth.

Adobe CEO Shantanu Narayen will transition to executive chair on December 1, 2026, with Anil Chakravarthy becoming president and CEO. Narayen has led Adobe's shift to AI-powered creative tools, focusing on Firefly and integrating AI across Creative Cloud. The company aims to automate workflows while maintaining creative control, with partnerships like Nvidia and enterprise adoption.

Adobe appointed Anil Chakravarthy, President of its Customer Experience Orchestration business, as its new CEO. Analysts view this as a strategic move to unify Adobe's broad portfolio and enhance its enterprise customer experience strategy. Adobe reported strong AI-related growth, with AI-first ARR exceeding $650 million in Q3 FY2026, but faces challenges in converting new users and optimizing AI adoption.

U.S. stock futures rose early Thursday after the Federal Reserve's 25 bps rate hike, with Nasdaq futures up 0.9% and S&P 500 futures up 0.7%. Nvidia (NVDA) faces competition from Huawei's AI chips. Nebius Group (NBIS) shares surged 8% after a price hike announcement. Snap Inc (SNAP) shares rose 3% with new AI assistant. Generac Holdings (GNRC) shares jumped 32% following an $8B Amazon deal. Tesla (TSLA) and SpaceX (SPCX) are in focus amid merger speculation and AI ambitions. Other companies ment

AMD reports steady orders due to strong AI chip demand, with robust AI workload deployments. Piper Sandler initiates coverage with an Overweight rating and $600 price target, citing AI compute demand and market share gains in server CPUs and GPUs.