Adobe price target raised to $645 from $640 at BMO Capital

BMO Capital analyst Keith Bachman raised the firm’s price target on Adobe to $645 from $640 and keeps an Outperform rating on the shares. The company’s Q3 earnings beat and Q4 guide were “solid”, even though expectations were higher heading into the print, the analyst tells investors in a research note. Adobe’s Q4 ARR guide seems conservative, but investors should consider that the company has a multi-year meaningful generative AI opportunity, driven by new solution enhancements beyond the four announced solutions, including areas such as Document Cloud, BMO added. The firm is also positive on Adobe’s incremental user growth, incremental price opportunities, and usage/consumption growth.