Adobe price target lowered to $630 from $650 at RBC Capital

RBC Capital analyst Matthew Swanson lowered the firm’s price target on Adobe to $630 from $650 but keeps an Outperform rating on the shares after its Q1 results. The company saw a “solid” start to the year, but this was overshadowed by an underwhelming Q2 Digital Media segment net-new annual recurring revenue guidance which, along with an implied unchanged FY24 guide, led to investor concerns around GenAI upside, the analyst tells investors in a research note. RBC adds however that Adobe’s quarter was highlighted by strength in Remaining Performance Obligation and bookings as well as record new commercial subscriptions for creative cloud.