Adobe near term upside captured in stock price, says DA Davidson

DA Davidson keeps a Neutral rating and $500 price target on Adobe after its Q3 results. The company’s “strong” quarter was driven by unrelenting momentum across the three clouds, with the main topics of discussion being the full release of standalone and bundling of generative AI tools, subscription price increases, and new partnerships with other tech giants, the analyst tells investors in a research note, adding that while the new monetization of the AI solution and the price increases should be additive next year, the full benefit should start FY25. DA Davidson adds however that it prefers to remain on the sidelines and believes that the near term upside on Adobe is largely captured in the current stock price.