Look Beyond Q3 For This Digital Marketing Leader

• Shares of Adobe Systems Incorporated ADBE have risen over 5 percent year-to-date.
• Oppenheimer’s Brian Schwartz has initiated coverage of Adobe Systems with a Perform rating.
• While expressing optimism regarding the company’s business trends, Schwartz stated that the premium valuation has made the stock’s risk/reward profile more balanced.

Schwartz went on to elaborate that the company has “a leadership position in the cloud digital marketing and media categories, an attractive value proposition, and large installed-base for future monetization activity.”

In addition, Schwartz expects Adobe Systems to continue to dominate in its core creative, marketing and document management solution businesses. However, the company’s growth is already reflected in the stock valuation, following almost four straight years of outperforming benchmarks.

The long-term outlook for the company also remains strong, with its expertise in digital media solutions and digital marketing being strengthened by its integrated platform, which “addresses the entire content lifecycle from creation and delivery to optimization and monetization,” the Oppenheimer report stated.

The company also has attractive emerging opportunities in other areas, including mobile, data, content, marketplace and verticals.

Also, Adobe Systems is expected to report robust Q3 results, driven by “strong management and a favorable selling environment for digital transformation and SaaS products.”