RBC Capital Maintains ‘Outperform’ Rating on Adobe (ADBE), Keeps $480 Price Target

On June 5, RBC Capital maintained its ‘Outperform’ rating on Adobe Inc. (NASDAQ:ADBE), leaving the price target unchanged at $480. Adobe’s rating was confirmed ahead of its Q2 FY2025 earnings report, set for release on June 12 after market close.

RBC Capital Maintains 'Outperform' Rating on Adobe, Keeps $480 Price Target

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RBC Capital expects Adobe to deliver strong Q2 results, citing the company’s solid fundamentals. The firm stated that Adobe maintains a $177 billion market capitalization with impressive gross margins of 89%. The company has also achieved 10.5% revenue growth over the past twelve months.

The analysts acknowledged that Adobe’s stock has underperformed relative to its large-cap technology peers. Nonetheless, their focus centers on the relationship between generative artificial intelligence (GenAI) and competitive dynamics in Adobe’s market segments.

In their Adobe thesis, RBC Capital’s analysts highlighted potential opportunities for increased visibility around GenAI monetization strategies. The analysts believe that a combination of generative credits from video capabilities and tiered pricing structures could enhance investor sentiment and drive future performance. These monetization opportunities position Adobe to capitalize on the growing demand for AI-powered creative tools.

Adobe Inc. (NASDAQ:ADBE) is a software company that provides digital media, marketing, and document solutions. The company’s flagship products include Creative Cloud applications such as Photoshop, Illustrator, and Premiere Pro, as well as Experience Cloud solutions for digital marketing and analytics.

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