01:01 PM EDT, 09/04/2024 (MT Newswires) -- Adobe (ADBE) likely experienced positive product momentum during fiscal Q3, but may issue "less bullish guidance" citing macro uncertainties and the US elections, Oppenheimer said in an earnings preview Wednesday.

The firm expects the company to post fiscal Q3 earnings of $4.52 per share on revenue of $5.36 billion, which compares to the consensus of $4.53 on sales of $5.37 billion.

Oppenheimer said competition fears were "mostly overblown" and it expected Adobe to moderately beat fiscal Q3 estimates and set a conservative fiscal Q4 outlook as the operating environment "remains challenging."

Still, the firm said it saw Adobe gaining traction in generative artificial intelligence which was supporting a "more bullish posture from investors on Adobe's positioning in the AI era."

Oppenheimer raised its price target for Adobe to $625 from $580, and maintained its outperform rating.

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