【Citi lowers Adobe (ADBE.O) target price to $551 as 2025 fiscal year faces pricing headwinds and more signs of revenue loss】Jin Shi Data, December 16 - Citi published a research report stating that Adobe (ADBE.O) had a disappointing performance in the fourth fiscal quarter, with net new annual recurring revenue (ARR) in digital media falling short of expectations. Management's outlook for the coming year is also weak, indicating that the company is in a transitional phase for its pricing model. Since the first price increase in November last year, the monetization of secondary consumption and point-charge models seems to have not translated into the same level of business growth momentum. The bank also pointed out that management's guidance for the 2025 fiscal year reflects a weakening conversion of net new ARR in digital media, suggesting that the company may face headwinds related to discounts, competition, and pricing factors, leading to revenue loss. Considering that Adobe will focus more on expanding new users and adjusting product economics and pricing in the future, Citi believes that visibility on performance is low in the short term, lowering its target price from $590 to $551, and reiterating a 'Neutral' rating. (Source: Jin Shi Data)