Adobe, the US software company behind Photoshop and Creative Cloud, has appointed Anil Chakravarthy as its new chief executive.
Chakravarthy previously led Adobe's enterprise division, and his promotion comes as the company's consumer chief departs.
Goldman Sachs has maintained its 'sell' rating on the stock, arguing that software companies must follow a specific approach to stay competitive as the industry shifts from the software-as-a-service (SaaS) era to one built around artificial intelligence (AI).
That approach rests on three pillars, the bank says: minimising technical debt, innovating through in-house development or acquisitions, and successfully monetising new technology.
Firefly focus
Goldman places Adobe in the innovation stage of that playbook, pointing to its recent acquisition of Topaz Labs as evidence of intent.
Analysts are watching two product cycles closely: Adobe Express and Firefly, the company's AI content orchestration engine.
Firefly matters because it offers what Goldman calls an enterprise-proven and commercially safe route into next-generation image and video tools.
The bank believes Firefly could evolve into an orchestration layer that lets corporate customers mix and match AI models rather than being tied to a single provider.
Creative Cloud more promising
Adobe Ventures, the company's investment arm, backs early-stage image and video businesses as a way of tracking emerging technology.
Goldman views Adobe's Creative Cloud division as a more promising area for a strategic pivot than its marketing software business.
The marketing software market is more competitive, the bank says, making it a harder environment for Adobe to gain ground.
Analysts said a move from sell to neutral would depend on specific, measurable progress rather than a general improvement in sentiment, to avoid what they called "thesis drift".
