Morgan Stanley Sees Creative Cloud Update As Potential Positive For Adobe Systems
In a report published Thursday, Morgan Stanley analyst Jennifer Swanson Lowe reiterated an Equal-Weight rating on Adobe Systems (NASDAQ: ADBE).
In the report, Morgan Stanley noted, “Adobe unveiled the biggest Creative Cloud update yet, including new versions of 14 products including Photoshop, Illustrator, InDesign, and Dreamweaver, with enhanced mobile, Web, video, and collaborative capabilities.
"The new offerings are available for immediate download by Adobe's 2.3M existing Creative Cloud subscribers, but we believe the broader goal is to accelerate the rate of new subscriber adds as well given attractive new functionality, coupled with the recent removal of CS6 from the channel.
"Adobe's target of 3.3M subscribers by year end bakes in H2 sub adds +15% from H1, so clearly the company expects CC 2014 to be a catalyst. Early feedback on the updates has been positive and we view the magnitude of the updates as on par with a traditional CS version release, but it remains to be seen whether adoption can accelerate beyond what's already in estimates.”
Adobe Systems closed on Wednesday at $73.08.
Latest Ratings for ADBE
|Jun 2015||Wunderlich||Initiates Coverage on||Hold|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.