UPDATE: Goldman Sachs Reiterates Sell Rating, Raises PT on Adobe Systems

In a report published Friday, Goldman Sachs Group reiterated its Sell rating on Adobe Systems ADBE, and raised its price target from $24.00 to $27.00. Goldman Sachs noted, “Given we expect management to use promotion in the near-term to build subscription revenue, we estimate that it will take until FY16 before non-GAAP EPS in the future period will be on par with the $2.36 registered in FY12. We are raising our 12-month price target to $27 from $24 (DCF, EV/Sales and P/E based) as we move to normalized sales and non-GAAP EPS (FY16 discounted back at Adobe's WACC) given the outsized impact the shift to subscription revenue has on sales and earnings.” Adobe Systems closed on Thursday at $35.53.