Adobe (ADBE) is expected to report in-line fiscal Q3 results Sept. 10, with annual recurring revenue delivering upside to consensus estimate of $27.5 billion, RBC said in a Wednesday note.
The note said ARR guidance and an update on pricing and go-to-market will be in focus amid near-term ARR headwinds. Others include announcements on a new CEO and/or CFO.
The report also said recent stock performance has been driven in large part by improving software as a service sentiment.
"We continue to feel a path to ARR re-acceleration remains the key to company-specific multiple expansion," it said.
RBC kept its outperform rating and raised its price target to $315 from $285 on the back of peer multiple expansion.
Price: $282.77, Change: $-3.31, Percent Change: -1.16%