Evercore ISI on Adobe (ADBE): 'F3Q results were actually quite strong'
Evercore ISI analyst Kirk Materne reiterated an Outperform rating and $650.00 price target on Adobe (NASDAQ: ADBE).
The analyst comments "Bottom line: F3Q results were actually quite strong, with NNARR beating by ~$45mn, again towards that higher $40-50mn beat cadence that was the norm in FY23 as opposed to the lower ~$20mn seen in F1Q. Still, clearly the disappointment has to do with the ~$550mn F4Q guide, which given the continued strong momentum in Document Cloud delivering +25% growth, infers Creative Cloud ARR growth of ~11.5% in F4Q, or a point below the ~12.5% seen in F2Q/F3Q. We will look for color on the call in terms of what is embedded in that guide, namely whether this is a matter of trying to be prudently conservative given the continued choppy macro as opposed to any read-throughs for broader CC/Firefly momentum."
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Shares of Adobe closed at $580.38 yesterday.