Rothschild Redburn reiterated a Sell rating and $280 price target on Adobe Inc. (NASDAQ:ADBE), warning that new generative AI tools could disrupt one of its core businesses.

The firm said testing of Google's newly previewed Nano Banana image editing model suggested it could significantly challenge Photoshop's dominance, adding to existing concerns about slowing seat growth and weakening pricing power. It also cited Runway's Aleph as an example of how quickly generative AI models for image and video creation were advancing, with fully editable outputs potentially emerging within months.

Redburn argued that the pace of innovation raised questions about the durability of Adobe's competitive moat, reinforcing its bearish outlook on the stock.