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Oppenheimer: Adobe Upbeat About Digital Experience Business Momentum

Priya Nigam

Adobe Inc (NASDAQ: ADBE) hosted its Summit conference and a financial analyst meeting Tuesday in Las Vegas.

The software maker gave broad details of enterprise customers using their digital experience management technology platform, and conference checks were positive, according to Oppenheimer.

The Analyst

Oppenheimer’s Brian Schwartz maintains a Perform rating on Adobe.

The Thesis

Adobe's presentations demonstrated “strong market validation" for the company, Schwartz said in a Wednesday note. 

The overall commentary on Adobe's digital experience platform strategy, trends and opportunities was upbeat, the analyst said. The company gave product updates and highlighted partnerships with Microsoft Corporation’s (NASDAQ: MSFT) LinkedIn, ServiceNow Inc (NYSE: NOW) and Roku Inc (NASDAQ: ROKU).

Adobe’s products and digital experience vision seem well-aligned with favorable secular demand for next-gen customer experience technology, business optimization and digital transformations, Schwartz said.

The company appears well-positioned to sustain growth and cash generation while gaining market share, the analyst said. 

On a more cautionary note, Schwartz said a moderating upside trend in quarterly results, recent senior management changes and execution risks from large company M&A activity could create overhangs for the company’s shares in the near-term.

Price Action

Adobe shares were slipping 1.97 percent to $260.37 at the time of publication Wednesday. 

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Latest Ratings for ADBE

Date Firm Action From To
Mar 2019 Canaccord Genuity Maintains Buy Buy
Mar 2019 KeyBanc Downgrades Overweight Sector Weight
Feb 2019 DZ Bank Downgrades Buy Hold

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