Adobe has favorable near-term set-up, long-term concerns, says Morgan Stanley

Morgan Stanley analyst Keith Weiss said the firm’s checks with CIOs point to plans for increase spending with Adobe, which combines with the firm’s "inline checks" and a largely de-risked outlook to present a "favorable near-term set-up." However, the firm sees this being balanced by unanswered long-term concerns and increased regulatory uncertainty around the Figma acquisition. Morgan Stanley has an Equal Weight rating and $382 price target on Adobe shares ahead of the company’s upcoming fiscal Q1 report.