UPDATE: Credit Suisse Reiterates Neutral Rating, Raises PT on Adobe Systems
In a report published Friday, Credit Suisse Group reiterated its Neutral rating on Adobe Systems (NASDAQ: ADBE), and raised its price target from $30.00 to $32.50.
Credit Suisse noted, “We remain cautious on Adobe's stock during the transition to a subscription-based licensing model for Creative Suite and as Adobe invests in digital marketing opportunities. Although we view revenue growth as the main driver of future operating income growth, we also believe that many of Adobe's solutions are maturing, the combination of which would reduce forward revenue and EPS growth as compared to the past decade and, therefore, limit multiple expansion. That said, determining the underlying growth of the Creative installed base is challenging during this transition. As such, we maintain our Neutral rating but slightly raise our target price from $30 to $32.50. We will monitor (1) the ability to attract new Creative users and (2) Adobe's success in expanding into the digital marketing market.”
Adobe Systems closed on Thursday at $35.53.
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