Jefferies analyst Brent Thill had expected Adobe’s (ADBE) deal to buy Figma to close given the positive developments around VMware and Activision clearing regulatory hurdles and closing, but admits “we were wrong in our view Figma would close” and notes that both companies said the hurdles were too high to overcome. The firm still believes competition concerns are “overblown” and that the companies’ products are complementary, but adds that Adobe’s creative business remains strong, with enhanced prospects thanks to AI. The firm, which notes that Adobe had $7.8B in gross cash at the end of fiscal Q4 and believes an expanded share buyback is “likely,” has a Buy rating and $700 price target on Adobe shares.
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