UPDATE: Jefferies Upgrades Adobe Systems Following Creative Cloud Model Transition Analysis

In a report published Wednesday, Jefferies analyst Ross MacMillan upgraded Adobe Systems ADBE from Hold to Buy, and raised the price target from $45.00 to $57.00.

In the report, Jefferies noted, “Our fresh analysis of the Creative Cloud (CC) model transition leads to a base-case of >$4.00 a share in NG-EPS on an end FY16 run-rate. While we have missed the stock move so far, we have increased conviction on the multi-year shift and highlight new user growth, point-product transition and churn as areas of upside. With a fresh look, we think the risk-reward at the current stock price remains attractive. Move to Buy with a $57PT.”

Adobe Systems closed on Tuesday at $44.37.