11:57 AM EST, 12/05/2024 (MT Newswires) -- Adobe's (ADBE) fiscal Q4 results are likely to be a positive for sentiment, with pricing tailwind seen as a likely driver of potential upside, RBC Capital Markets said Thursday.

The software company is scheduled to report fiscal Q4 results Wednesday. RBC expects non-GAAP earnings of $4.65 per share on revenue of about $5.53 billion.

The brokerage expects the pricing headwinds seen in H1 to have turned into a tailwind in the quarter, potentially offering an upside to results.

"We expect upside when Adobe reports Q4 results, but also feel investor sentiment is likely to remain tethered to GenAI monetization and concerns around perceived competitive threats," RBC analysts, including Matthew Swanson, said in a note to clients.

Generative artificial intelligence has weighed on the company's stock since Q3 print, compared with industry peers. However, the investment bank believes Adobe is on track of its GenAI roadmap.

RBC maintained its outperform rating and a $610 price target for Adobe stock.

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