UPDATE: Susquehanna Initiates Coverage on Adobe Systems

In a research note dated February 24, 2014, Susquehanna initiated its coverage of

with a Positive rating and announced a $83 price target. Susquehana analyst Derrick Wood is optimistic about the future of Adobe and points to the company's transition to a cloud based delivery model as a "springboard" for Adobe to become "one of the fastest growing large cap companies in software." Wood notes that the model transition is set to be complete in 2015-2016. With the completion of this transition, Wood sees Adobe as being able to generate 1)faster innovation 2) higher utilization 3) a more efficient sales model and 4) an expanding total addressable market. By 2016, Wood models that Adobe will be larger in the cloud than Salesforce.com

is today and have "substantially healthier" operating margins. At last check, Adobe was trading down just over one percent at $67.95.