ADBE – Market expectations are for record-high Uniform ROA, but management may have concerns about demand, digital transformation, and revenue

• Adobe Inc. (ADBE:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 48.8x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about product demand, digital transformation, and revenue growth.
  
• Specifically, management may lack confidence in their ability to continue powering the paper-to-digital transformation, turn seamless product integration into a competitive edge, and continue delivering customer value. In addition, they may have concerns about the sustainability of demand for 3D and Immersive (3D&I) in key verticals and the persistence of demand for Sign products. Furthermore, they may lack confidence in their ability to maintain revenue growth and further close customer deals for their customer experience management (CXM) solutions.