Mizuho analysts upgraded Adobe (NASDAQ:) stock to Buy from Neutral with a price target raised by $110 to $630 per share.
Adobe is due to report its third-quarter fiscal results next Thursday.
“Our enterprise checks were generally healthy, and more interestingly indicative of a much better F4QE. In addition, web traffic has continued to meaningfully accelerate, and we expect good upside to F3Q net new Digital Media ARR,” the analysts wrote in a client note.
Despite being positive into the upcoming earnings report, they insist “this isn’t about a call on the quarter.”
“ADBE remains very well positioned to benefit from digital transformation with its highly comprehensive end-to-end offering. In addition, we see signs of improving fundamentals across Digital Media and Digital Experience, and we have rising confidence in GenAI as a significant growth driver,” the analysts further noted in a report.
Adobe stock rose 1.7% in premarket Friday.