Adobe Systems Incorporated (NASDAQ: ADBE) reported its F2Q16 results marginally below the consensus and guidance.

Goldman Sachs’ Heather Bellini maintains a Neutral rating on the company, while raising the price target from $100 to $105.

F2Q16 Results

Bellini mentioned that the non-GAAP EPS exceeded the consensus and guidance for F2Q16, driven by improved margins, as well as tailwind from below-the-line items.

Adobe Systems reported 10 percent year-on-year growth in non-GAAP operating expenses — below the F1Q16 level of 15 percent, but higher than in recent periods.

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“While ADBE continues to execute well on its transition, most key metrics were in line or slightly below consensus versus the typical beats the Street has become accustomed to,” Bellini stated.

Digital Media ARR came in at $3.41 billion, marginally missing the consensus forecast of $3.42 billion for the first time in five quarters and rising $285 million from the previous quarter.

Guidance

For F3Q16, the company guided to revenue in the range of $1.42–$1.47 billion, with the higher end of the range in line with the consensus.

In addition, Adobe Systems maintained its FY16 non-GAAP EPS guidance, which Bellini believes “makes the implied F4Q earnings look conservative.”

“While the bears will likely pick at the lack of an ARR beat and soft revenue guide, we view F2Q16 performance as largely in line with the transition,” the analyst added.