11:21 AM EDT, 06/14/2024 (MT Newswires) -- Adobe's (ADBE) fiscal Q2 results demonstrated that its recent growth strategies are "gaining momentum" in both the core business and new generative artificial intelligence services, BofA Securities said in a note Friday.

The company is poised to reach a "solid" mid-teens revenue growth path as tough comparisons are now behind it, the report added.

"We have higher confidence in the sustainability of that growth rate, given a more diversified set of drivers across the Creative and Document Cloud franchises," the report said.

In the creative cloud category, the company is shifting to monetization from top-of-funnel proliferation as free users are switching to paid or premium offerings, BofA Securities wrote.

Adobe is also witnessing traction with tailored AI deals for Firefly services with international brands, according to the note.

BofA Securities maintained Adobe's rating at buy and price target at $640.

Shares of the company rose nearly 15% in recent Friday trading.

Price: 524.21, Change: +65.47, Percent Change: +14.27