** BofA Global Research reinstates coverage of Photoshop maker Adobe ADBE.O with "underperform" rating

** Brokerage's price objective of $190 implies a downside of 12.9% to stock's last close

** BofA says AI is lowering barriers to content creation and can pressure Adobe's competitive advantage

** "We see Adobe's own AI strategy as largely defensive, supporting engagement and retention but limited on its ability to generate incremental high-quality annual recurring revenue at scale" - BofA

** BofA says AI-first ARR still accounts for less than 2% of total ARR despite "notable" product adoption; "shift toward freemium and consumption-based pricing introduces monetization risk"

** 12 of 39 brokerages rate the stock "buy" or higher, 23 "hold" and four "sell"; median PT is $250 - data compiled by LSEG

** Shares of Adobe rise 4.6% to $228.1

** Including session's moves, stock is down about 35% YTD