Morgan Stanley analyst Keith Weiss notes Adobe’s Q3 results beat consensus across revenues, ARR and margins, with the magnitude of the Digital Media Net New ARR beat sustaining at about 10%. However, the initial guidance for Q4 Digital Media Net New ARR at $550M was “disappointing,” coming in below the $570M implied in the Q3 guide, the analyst tells investors. With building momentum behind a broadening portfolio of GenAI enabled solutions, the firm attributes this to “conservatism” and remain buyers of the shares with an unchanged Overweight rating and $660 price target on Adobe, which is down $48.65,or 8%, to $537.90 in Friday pre-market trading.
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