Bank of America restarts coverage of Adobe with Underperform view, sets $190 target

Bank of America has resumed coverage of Adobe, assigning an Underperform rating and setting a $190 price target, according to a report syndicated by Yahoo Finance on July 7, 2026.

The note frames the rating around the idea that artificial intelligence will reshape competitive dynamics in Adobe’s markets over the long run. In the write-up, BofA suggests those longer-term challenges could outweigh near-term indicates reflected in the company’s current valuation.

BofA’s stance also points to a tension often seen in software markets as AI tooling spreads, where incumbents may benefit from faster workflows and new features, while customers also face growing alternatives and shifting expectations about how content creation tools should perform.

Adobe, for its part, is widely known as a provider of software used in creative work, and it has been among the companies investing in AI capabilities aimed at automating or enhancing parts of the creative process. That backdrop is important when considering why an analyst would focus on AI-driven competition rather than only on traditional growth drivers.

Even with the Underperform call, the reported target implies the analyst is working from a specific valuation view, rather than arguing that the business faces immediate existential risk. The report indicates BofA sees the valuation as relatively low while still concluding that fundamentals could be pressured by AI-related competitive dynamics over time.

What the post does not detail is the specific operating or financial evidence behind the price target, including any explicit assumptions for revenue growth, margin trends, or how AI competition might affect Adobe’s pricing power. It also does not disclose whether the firm expects Adobe to gain or lose share in particular segments, nor does it break down forecast impacts by product line.

Investors looking for more clarity may need to wait for the full research report or additional commentary. The immediate takeaway from the published summary is that BofA’s re-entry into coverage is anchored on the competitive implications of AI, and that the firm is willing to position against the stock even at what it characterizes as a lower valuation level.