Citi has reiterated its Buy rating on American Tower Corporation (NYSE: NYSE:AMT) with a consistent price target of $255.00.
The firm's analysis highlighted Adobe (NASDAQ:ADBE)'s performance, noting a strong third quarter that benefited from favorable large deal timing.
However, this was tempered by a weaker-than-expected fourth quarter net new annual recurring revenue (NNARR) outlook and a slight reduction in the full year revenue targets. This adjustment was attributed to a potential increase in churn affecting the revenue and annual recurring revenue conversion.
The firm observed that despite a roughly 8% decline in Adobe's share price in after-hours trading, the overall financial estimates remain largely unchanged.
The drop in share price was seen as a reaction to heightened investor expectations, although the stock remains above its post-earnings level from the previous quarter.
According to Citi, the recent quarter's results do not alter the investment thesis, as the debate on winners and losers in the Creative Cloud NNARR, excluding price, is expected to continue.
The report also mentioned anticipation for new product announcements at the upcoming Adobe MAX conference, although it is not expected to bring significant financial updates.
Instead, the focus will likely shift to the initial guidance for fiscal year 2025, where Citi predicts a conservative approach and positions its estimates slightly below the consensus.
Citi adjusted its price target for Adobe to $616 from the previous $621, maintaining a Neutral rating on the stock.
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