-- Adobe (ADBE) is expected to focus on partnerships and product announcements highlighting the company's end-to-end workflows at its Summit event next week, RBC Capital Markets analysts said in a Thursday note to clients.
Analysts said that while investors are keen on annual recurring revenue re-acceleration, return on investment is the core of the GenAI value proposition and should be the central focus of the event.
RBC said it will also look for more details on how GenAI can be a net benefit to the company's annual recurring revenue, including updates on freemium model conversion and credit consumption.
Analysts said that, considering the recently announced CEO transition, it is less likely that Adobe will provide any long-term guidance at the event.
Abode is expected to outperform its peer group over the next 12 months, RBC added.
RBC analysts retained an outperform rating on the stock, but lowered its price target to $350 from $400.
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