Analysts are lauding Adobe’s third-quarter results and staying bullish. The software company reported a top- and bottom-line beat Thursday, on an adjusted $4.09 per share and $4.89 billion in revenue. Analysts polled by LSEG, formerly known as Refinitiv, forecast an adjusted $3.98 per share and $4.87 billion, respectively. Adobe also issued in-line forward guidance and said it expected fourth-quarter revenue of $4.975 billion to $5.025 billion. Analysts polled by LSEG expected $5 billion. The company has been a key beneficiary from investor excitement over artificial intelligence so far in 2023, with the stock adding more than 64% from the start of the year. Goldman Sachs analyst Kash Rangan reiterated a buy rating on Adobe stock with a higher $625 per share price target, up from $550. The firm’s forecast implies roughly 13% upside from Thursday’s $552.16 close. The analyst highlighted Adobe’s exposure to generative AI that will allow the company to raise prices 6% to 10%. “Gen AI presents a +$4bn TAM [total addressable market] driven by increased retention, increased user spend, and new monetization strategies,” Rangan said. Bank of America’s Brad Sills also reiterated a buy rating on Adobe stock Thursday, accompanied by a $660 per share price target. BofA’s forecast implies about 20% upside from Thursday’s close. “The result stands out in an environment where the macro environment has remained challenging across the software ecosystem,” Sills said. “Adobe is competing more effectively with the freemium offering in the more competitive consumer and communicator segments.” Morgan Stanley analyst Keith Weiss remained overweight on Adobe stock after third-quarter results, also with a $660 per share price target. Weiss highlighted Adobe’s ability to expand margins throughout the quarter despite higher costs associated with AI. “While there will likely be a gross margin impact on a go forward basis given the costs to generate every Firefly image and as Adobe further invests in other media types like video and 3D, Adobe sounded confident in its ability to continue to find operational efficiencies and leverage in its best-in-class model including a maturing Digital Experience segment,” Weiss said. JPMorgan’s Mark Murphy is neutral on Adobe stock, with a $530 per share price target. Murphy’s forecast is 4% lower than the Thursday closing price. “We continue to lean favorably on Adobe given its relatively de-risked outlook for FY23 revenue growth, incremental AI monetization opportunities, and mostly favorable customer and partner checks, but continue to monitor developments as the company navigates macro headwinds and rising cash taxes weighing on its near-term FCF generation, while it simultaneously works to justify the high premium for its pending Figma acquisition to investors, which faces increasing antitrust scrutiny,” Murphy said. — CNBC’s Michael Bloom contributed to this report.