Why did BMO downgrade Adobe and cut its price target?

BMO cited rising competition, especially from Canva, and a lack of clear near-term catalysts. They moved to Market Perform and reduced the price target to $375. The call shifts focus to execution on recurring revenue, seat growth, and paid AI traction before sentiment can improve.

What should UK investors watch before Adobe’s earnings?

Watch US CPI next week for rate and multiple effects, then look for recurring revenue, net new seats, and paid AI monetisation on 12 March. Clear guidance on margins and cash flow would help rebuild confidence in Adobe stock and support a move toward the 50-day average.

How does the competitive threat from Canva affect Adobe?

Canva pressures the lower end with price and ease of use, which can weigh on new seats. Adobe’s edge is in enterprise, integration, and workflows. Strong engagement, bundles, and paid AI features can protect average revenue and reduce churn, supporting Adobe stock over time.

Is Adobe’s valuation attractive after the pullback?

Valuation around 20x earnings and 14x free cash flow looks reasonable for a high-margin software leader. The setup improves if paid AI drives higher monetisation and guidance firms. Without that, multiples could stay capped, so entries near support and disciplined sizing make sense.

Global Market Insights

ADBE Stock Today, January 10: BMO Downgrade, Canva Pressure Hit Shares

ByHuzaifa Zahoor January 10, 2026January 10, 2026

Adobe stock fell after a BMO downgrade to Market Perform with a price target cut to $375, citing rising Canva pressure and few near-term catalysts. We break down what this means for UK investors, including technical levels, valuation, and the roadmap into US CPI next week and 12 March earnings. With sentiment fragile, we outline the key data points that need to firm up to steady confidence in ADBE.