$Adobe (ADBE.US)$ Piper Reiterates OW PT $635 Nothing in Q3...

$Adobe (ADBE.US)$ Piper Reiterates OW PT $635

Nothing in Q3 results or the Q4 outlook changes our thesis that ADBE is in the early innings of a new innovation cycle. After raising our EPS estimates for this year and next despite minor tweaks of 0.2% to our top-line growth assumptions, we maintain at Overweight with a $635 PT. While the 28% 3-month recovery in ADBE shares (vs. 3% S&P 500) suggests investor optimism was elevated ahead of results, the -9% after hours sell-off appears overdone for a high-quality software asset operating at $20B+ scale with 45%+ operating margins. After the dust settles, we would look to build positions in ADBE ahead of the MAX user event next month.