Mizuho analyst Gregg Moskowitz reiterated a Neutral on Adobe Inc ADBE with a $360 price target. Adobe will report its F4Q results this Thursday.
Moskowitz’s enterprise checks improved slightly this quarter, although web traffic patterns remain weak. The analyst expected that ADBE’s net new Digital Media ARR and total revenue would be marginally above guidance that was viewed as conservative.
ADBE remains well-positioned to benefit from digital transformation with its highly comprehensive end-to-end offering. More specifically, Creative Cloud has positioned ADBE to meet the rising demand for solutions from photographers, illustrators, designers, editors, and other creative individuals and professionals, the analyst wrote.
Moskowitz also sees Document Cloud at the forefront of the paper-to-digital movement and believes Experience Cloud can benefit from rising demand for better customer experiences “anytime, anywhere.”
However, ADBE has exhibited fundamental choppiness over the past several quarters, and an increasingly challenging macro could add even more pressure.
The analyst also believes a lengthy expected review process and near-term material dilution for Figma will likely serve as an overhang for a while.
RBC Capital analyst Matthew Swanson reiterated Outperform with a $395 price target. Fourth quarter results will be the first fresh data point to the debate as bears continue to worry that the deal reflects the trajectory of the creative cloud.
At the same time, bulls focus on the additive value of the acquisition to move deeper into the development space and as a backbone of future cloud collaboration across the platform.
The macro-environment remains top of mind with investors. Specifically, Swanson continues to see enterprise-focused companies deal with long sales cycles and greater deal scrutiny.
Solid third-quarter results were largely overshadowed by the announcement of the pending acquisition of Figma, which has driven the narrative ever since.
Swanson views Q4 results as an opportunity to address concerns around the durability of the experience cloud and competitive positioning within creative.
During the quarter, Adobe hosted its Max user event and analyst day. While incremental Figma details were scarce, management highlighted internal advancements in Creative Cloud, particularly around AI and ML. Additionally, at the event, the company laid out initial FY23 guidance, which to the analyst, was a prudent initial outlook.
Price Action: ADBE shares traded higher by 1.64% at $336.14 on the last check Monday.
Image and article originally from www.benzinga.com. Read the original article here.