Adobe initiated with a Neutral at DA Davidson

DA Davidson analyst Gil Luria initiated coverage of Adobe with a Neutral rating and $350 price target. The company is well positioned for slower software market growth in 2023 and its Figma acquisition represents a good strategic fit, but until visibility increases into enterprise budgets and the Figma dilution, the stock is less likely to outperform its peers in the near- term, the analyst tells investors in a research note. Luria adds however that longer-term, he expects Adobe to be a key beneficiary of increased adoption of AI-enabled productivity enhancing tools.