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Adobe guidance ‘unlikely to pull investors off the sidelines,’ says Evercore ISI

Evercore ISI says Adobe (ADBE) delivered “solid” fiscal Q2 results with revenue and EPS both ahead of expectations and total revenue guidance raised modestly. However, the firm sees “no real fireworks for bulls or bears this quarter” and expects the shares to remain range-bound as the total Digital Media ARR growth target of about 11% was reiterated and infers some deceleration in the second half despite easier comparisons. At these levels, the firm believes the downside is limited, but thinks the second half guidance is “unlikely to pull investors off the sidelines,” adds the analyst, who has an Outperform rating and $475 price target on Adobe shares.

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