Citi cuts Adobe to 'sell' on weak outlook expectations

** Citigroup downgrades Adobe to "sell" from "neutral"; trims PT to $207 from $250

** ** New PT implies a 5.9% downside to the Photoshop-maker's last close of $219.91

** Citi says incoming CEO Anil Chakravarthy assumes role amid key leadership vacancies, including CFO and head of its digital media segment

** ADBE is shifting its focus from converting top-of-funnel users to paying subscribers to increasing its monthly active users (MAU), potentially leading to less monetization of core and AI tools and hence impacting revenue metrics - Citi

** Given the leadership gaps and the changing strategy, Citi expects ADBE to announce a weak outlook for FY27, which could pressure its stock near-term

** ADBE shares up 1.6% at $249.93 amid broader rally in tech sector after Democrats won the US House and Senate in midterm elections

** 10 analysts rate ADBE stock "buy" or higher, 23 "hold" and 6 "sell", median PT at $260 - data compiled by LSEG

** Including session's moves, ADBE down over 28% YTD