Derrick Wood reiterated a Buy rating on Adobe, setting a price target of $625. Positive factors include enterprise demand for AI products and a transition from pricing headwinds to tailwinds.
Wood emphasized the strong fourth-quarter pipeline for enterprise AI, predicting growth reminiscent of rates not seen since the first half of 2021, which supports a bullish outlook for Adobe.
Despite mixed results from a survey, Wood believes Adobe's focus on direct sales over resellers diminishes the relevance of that feedback, indicating potential resilience in demand.
He also highlighted a softening competitive environment for Adobe's AI, combined with strong Q4 guidance expectations, underlining confidence in sustainable quarterly improvements for the company.
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