Adobe delivers ‘strong results’ in Q3, says RBC Capital

RBC Capital keeps an Outperform rating and $615 price target on Adobe after the company’s “strong results” in Q3 that were aligned with consistent execution. Profitable growth was a “hallmark of the year” for the company, particularly due to the investments being made in generative AI, which were a focal point and do not currently offset revenue contribution in the quarter, the analyst tells investors in a research note. As momentum builds heading into Adobe MAX 2023 Creativity Conference next month and FY24, the company’s real-time customer data platform is an underappreciated aspect of the story, as is its total addressable market potential for personalized marketing, RBC added.