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Adobe Platform Shift, Agentic AI Tools Support Long-Term ARR Growth, RBC Says

-- Adobe's (ADBE) key partnerships and new agentic tools highlighted at its Adobe Summit event support its transition toward a broader platform and ecosystem and could drive longer-term annual recurring revenue growth, a key metric for investors, RBC Capital Markets said.

Adobe is aiming to move towards becoming a broad platform and ecosystem rather than just providing a set of tools to solve point problems. In the investor session, the company highlighted its roadmap around agentic AI products and partnerships designed to provide a single platform for end-to-end marketing workflow orchestration, the brokerage said.

On the partnerships side, RBC said the two most interesting collaborations are the go-to-market partnerships with large advertising agencies and system integrators and agentic partnerships with major AI and technology platforms. Adobe needs to be integrated with the broader omnichannel ecosystem to become an orchestration layer for marketing.

The company demonstrating that its Experience Cloud delivers clear return on investment will be key to expanding enterprise and creative customer spending and increasing wallet share, the investment firm said in a Tuesday note.

RBC maintained the company's stock rating at outperform and price target at $350.

Shares of Adobe were up 3.3% in Wednesday trading.

Price: $255.41, Change: $+8.23, Percent Change: +3.33%

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Commodities

Biofuels Update: Feedstock Futures Slip on Profit Taking

Major biofuel feedstock futures eased on Thursday amid profit taking, offsetting upsides from higher crude oil prices and weather-related supply risks.The May soybean contract on the Chicago Board of Trade dropped 0.24% to $11.62 per bushel. The May soybean oil contract slipped 0.54% to 71.29 cents per pound.Soybean prices have recently hit chart resistance resulting in profit taking, according to Sam Hudson of Cornbelt Marketing, as cited by AgWeb.Bryan Doherty of Total Farm Marketing, also cited by the agricultural news agency, said a strong market catalyst is needed to get above this resistance. Recent soybean oil strength from rising biofuel demand may not be sufficient, as slowing exports were putting downward pressure.Soybean oil exports for the week ended April 16 were estimated to be between net reduction of 10,000 metric tons and sales of 14,000 mt, while soybean exports were expected to range from 200,000 mt to 600,000 mt. Industry data will be released on Thursday.Additional export demand may come from China, with market participants keenly eyeing the Trump-Xi summit in mid-May.However, the ongoing US-Iran conflict may complicate US-China trade relations, possibly prompting China to turn to Brazil and Argentina for soybean imports, ADM reported, citing Louis Dreyfus chief risk officer Vijay Chakravarthy.In terms of supply, occurrence of rain could slow US planting, providing some price support.In Asia, Malaysian palm oil futures eased from near two-week highs on Thursday, as traders booked profits and as weak exports offset expectations of tighter supply due to the El Nino weather phenomenon.Ending a three-session rally, the Bursa Malaysia Derivatives' May crude palm oil contract lost about 1% to 4,505 Malaysian ringgit ($1,135.91) per metric ton. The June contract dropped by the same extent to 4,552 ringgit/mt.Both contracts were up 2.7% to 2.9% so far this week, reversing two straight weekly losses.Prices also declined on Thursday despite an increase in crude oil prices and a weakening in the local currency.Export demand for the current month has softened, with cargo surveyors reportedly estimating a 25.6% to 25.8% month-over-month drop in Malaysian shipments for the first 20 days of April, largely due to lower Middle Eastern demand.Nonetheless, expanding biofuel use in Southeast Asian producers, following improved economics and to help meet domestic market needs amid ongoing supply chain disruptions, will support palm oil going forward.Higher biodiesel programs in Indonesia, Malaysia, and Thailand, as well as the potential impact of El Nino phenomenon on palm oil output, will tighten supply.With the market looking at how extreme weather conditions will impact production, "prices still have room to rise," according to price reporting agency MySteel.BMI Research, as cited by The Edge Malaysia, said El Nino concerns will be a supportive factor going forward and will temper declines brought about by fading geopolitical risk premium.In the short term, it reportedly expects developments in the US-Iran conflict to continue influencing market trends, with palm oil prices likely to slip to around 4,200 ringgit/mt in Q2, assuming de-escalation in the Middle East conflict.In the long term, "the interplay of biodiesel expansion, weather risks, and geopolitics is setting the stage for a more constrained global palm oil balance going into 2026-27," said B.V. Mehta, executive director at Solvent Extractors' Association of India.In the US, the May-dated ethanol futures on the NYMEX continued to gain for a third straight session on Wednesday, rising 1.05% to $1.92 per gallon, on lower production and stronger exports.In the week ended April 17, ethanol production in the US declined to 1.0 million barrels per day, from 1.1 mmbbls/d a week earlier, according to data released by the US Energy Information Administration.The decline is expected during a seasonal downtime in planting, agriculture data provider DTN said, adding that production in the current season is still up 2%, with margins remaining strong.Exports grew week over week to 91,000 barrels per day from 81,000 b/d, data also showed.However, stocks rose to 26.9 million barrels from 26.7 mmbbls.

Asia

China Medical System Gets China Acceptance for Seasonal Allergic Rhinitis Drug Indication of MG-K10

China Medical System's (HKG:0867, SGX:8A8) new drug application for the seasonal allergic rhinitis indication of MG-K10 was accepted by China's National Medical Products Administration, according to a Thursday Hong Kong bourse filing.The firm holds co-development rights, excluding the indication of atopic dermatitis, and exclusive commercialization rights for the drug.The drug is proposed to treat adult patients with moderate-to-severe seasonal allergic rhinitis whose symptoms are inadequately controlled following treatment with intranasal corticosteroid.

$HKG:0867$SGX:8A8
Sectors

Sector Update: Energy Stocks Edge Higher Premarket Thursday

Energy stocks were edging higher premarket Thursday, with the State Street Energy Select Sector SPDR ETF (XLE) advancing by 0.4%.The United States Oil Fund (USO) was up 1.1% and The United States Natural Gas Fund (UNG) was 2.4% lower.Front-month US West Texas Intermediate crude oil was 0.3% higher at $93.20 per barrel at the New York Mercantile Exchange. Global benchmark North Sea Brent crude oil gained 0.2% to reach $102.06 per barrel, and natural gas futures were down 1.8% at $2.67 per 1 million British Thermal Units.Helix Energy Solutions (HLX) and Hornbeck Offshore Services have agreed to merge in an all-stock deal to form an integrated offshore services company. Shares of Helix Energy Solutions Group were up more than 5% pre-bell.Sasol (SSL) said it now expects fiscal 2026 fuel sales volume growth of 10% to 15% year-over-year, up from previous guidance of 5% to 10%. Sasol shares were down more than 2% premarket.Apollo Global Management (APO) said Thursday it has agreed to acquire a 40% stake in Pembina Gas Infrastructure from KKR (KKR). Pembina Pipeline (PBA) shares were nearly 2% higher pre-bell.

$APO$HLX$KKR$PBA$SSL$UNG$USO$XLE