Adobe Q2 results ‘could mark a sentiment bottom,’ says Evercore ISI

Evercore ISI analyst Kirk Materne says Adobe sentiment and valuation are “essentially at multi-year lows,” so the firm believes that the risk/reward skews to the positive when looking to the second half and that fiscal Q2 results “could mark a sentiment bottom.” However, with that said, the firm adds that it sees Q2 as a “more of a ‘survive and advance’ print” as there will be some debate on the digital media net new ARR guidance, with Q3 results seen as “being the bigger potential catalyst.” Evercore has an Outperform rating and $650 price target on Adobe shares.