Citi sees Adobe's Max event a 'modest positive' despite no guidance
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Citi Research said that Adobe's (NASDAQ:ADBE) annual event Max was a modest positive despite no initial guidance for 2024 was provided by the company.
Citi's analysts noted that the Adobe MAX user conference and Analyst Day was centered around the theme of generative artificial intelligence, or Gen AI, and highlighted Adobe's range of offerings that support the needs of all audiences.
On Tuesday, Adobe (ADBE) unveiled Firefly Image 2 Model and also showcased Adobe GenStudio â a new service which brings together Creative Cloud, Express and Experience Cloud, with Firefly gen. AI â among other tools and features.
The analysts said that they spoke with 15+ creative customers at the conference which yielded positive feedback on the value of new products/features, despite some frustration with recent price increases.
While the FA Day was less eventful than prior years with no initial 2024 outlook, the analysts added that they think Adobe's management sent a message of confidence on near-term business trends and the company's innovation engine.
The analysts noted that they walked away from day 1 of the event incrementally positive about Firefly's strong adoption and new gen. AI offerings plus price increases steering solid DM (Digital Media) NNARR (net new annual recurring revenue) growth in 2024.
Adobe (ADBE) has a Hold rating at Seeking Alpha's Quant Rating system, which consistently beats the market. Meanwhile, the Seeking Alpha authors' average rating is more positive with a Buy and so is the average Wall Street analysts' rating.

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