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RBC Reaffirms Outperform on Adobe Ahead of Q2 Earnings

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RBC Capital reiterated its Outperform rating on Adobe (NASDAQ:ADBE) with a $480 price target, expressing optimism ahead of the company’s Q2 earnings report scheduled for June 12.

While Adobe’s stock has lagged behind its large-cap tech peers, RBC noted a shift toward more constructive investor sentiment at current valuation levels. The firm believes upcoming results should be solid, but attention will remain centered on how effectively Adobe navigates the evolving competitive landscape shaped by generative AI.

Key to improving sentiment, according to RBC, will be Adobe’s progress on monetizing generative AI. Initiatives such as tiered pricing and generative credit models in video and creative workflows may offer greater transparency and momentum in this emerging revenue stream.

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