UPDATE: Bank of America Upgrades Adobe on Subscription Transition Acceleration

In a report published on Wednesday, Bank of America analyst Kash Rangan upgraded Adobe ADBE from Neutral to Buy and raised the price target from $47 to $57. In the report, Bank of America stated, "Three reasons for upgrading ADBE to Buy – 1. Higher confidence in potential for upside to Creative Cloud (CC) subs as we exit F15...2. Higher confidence in ADBE's ability to convert a large portion of its Total Available Market of ~12mn installed license base of Creative Suite customers eventually into a potentially large several bn $ recurring rev stream...3. Higher confidence that ASP per subscriber ($37-$38) while going through ebbs and flows due to promotions can be overall maintained over the next 3-five years by increasing functionality in CC." Adobe closed on Tuesday at $43.36.