Adobe upgraded to Buy from Neutral at Mizuho

Mizuho upgraded Adobe to Buy from Neutral with a price target of $630, up from $520, ahead of the company’s fiscal Q3 report next Thursday. Enterprise checks were “generally healthy” and indicative of a “much better” fiscal Q4 for Adobe, the analyst tells investors in a research note. The firm says the company’s web traffic has continued to meaningfully accelerate and that it expects “good upside” to net new Digital Media annual recurring revenue in Q3. However, this isn’t a call on the quarter, as Adobe remains very well positioned to benefit from digital transformation with its “highly comprehensive end-to-end offering,” contends Mizuho. The firm sees signs of improving fundamentals across Digital Media and Digital Experience for Adobe, and has rising confidence in generative artificial intelligence as a “significant growth driver.”