UPDATE: Susquehanna Initiates Coverage on Adobe Systems
In a research note dated February 24, 2014, Susquehanna initiated its coverage of Adobe Systems (NASDAQ: ADBE) 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 (NYSE: CRM) is today and have "substantially healthier" operating margins.
At last check, Adobe was trading down just over one percent at $67.95.
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