** Shares of Photoshop maker Adobe ADBE.O down 3.04% at $427.43; hitting their lowest level since June 2023

** Brokerage UBS maintains a "neutral" rating, cuts stock's PT to $475 from $525

** New PT represents a 7.7% upside to the stock's last closing price

** Brokerage takes the example of commercials released by Coca-Cola in mid-November 2024 and a previous ad released by Toys "R" Us - both being entirely AI-generated - noting that this could be tipping point to a material increase in AI-based advertising or marketing content

** UBS notes that these ads did not use Adobe AI tools for content creation and instead opted for rivals such as OpenAI

** "The creative AI market is fiercely competitive, with

OpenAI, Runway and Midjourney the early leaders" - UBS analysts say, adding that ADBE was not at feature parity with these leaders

** In December, ADBE had forecast fiscal 2025 revenue below Wall Street estimates

** Thirty of the 40 analysts covering the stock rate it "buy" or higher; their median PT is $600.61, according to data compiled by LSEG

** ADBE shares fell more than 25% in 2024

(Reporting by Sanchayaita Roy in Bengaluru)

((Sanchayaita.Roy@thomsonreuters.com))