Mizuho Securities analysts increased their rating on Adobe (NASDAQ:ADBE) stock from Neutral to Buy, along with raising the price target by $110 to $630 per share. This upgrade comes ahead of Adobe’s upcoming third-quarter fiscal results, which are scheduled to be reported next Thursday.
The analysts reported that their evaluations of the company’s performance have yielded positive results, suggesting a significantly improved Q4. Furthermore, there has been a consistent rise in web traffic, raising expectations for favorable Q3 outcomes in terms of the new Digital Media ARR.
Despite the optimism surrounding the upcoming earnings report, the analysts emphasized that this upgrade isn’t solely based on expectations for the upcoming quarter. They highlighted Adobe’s strong position to benefit from the ongoing digital transformation thanks to its comprehensive end-to-end offerings. Additionally, there are positive signs indicating improvements in the fundamentals of both the Digital Media and Digital Experience segments, along with growing confidence in GenAI as a major growth driver.