JPMorgan analyst Sterling Auty reiterated a Neutral rating on Adobe (NASDAQ: ADBE).

The analyst comments "Tonight, Adobe is set to report the first quarter of fiscal 2022, and once again digital media net new ARR remains in focus. We are looking for $394 million added for the quarter, down from the $435 million added in the first quarter of last year. This fiscal year is the first year that the net new ARR is expected to be smaller than the year before, since the company started reporting the metric in 2012. Investors have been questioning competition and maturation of the market for potential explanation, but we would also factor in FX headwinds. We expect Document Cloud ARR to grow 27% by adding $69M of net new ARR. Following the challenging outlook from DocuSign, it will be interesting to see if Adobe Sign had another strong quarter like it did in November. Finally, on the digital experience side, we are looking for total reported revenue growth of ~11%, in line with guidance. Given the pressure the stock has been under, this will be an important print to set the tone for the fiscal year."

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Shares of Adobe closed at $453.59 yesterday.