UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Adobe Systems Following Revenue/EPS Report

In a report published Wednesday, Deutsche Bank analyst Nandan Amladi reiterated a Buy rating on Adobe Systems ADBE, and raised the price target from $50.00 to $52.00. In the report, Deutsche Bank noted, “ADBE reported revenue/EPS of $1.01bn/$0.36 vs. our $1.00bn/$0.33 and consensus of $1.01/$0.34, with earnings benefiting from 200bps upside to our op margin estimate. New subscriber adds at 221k were ahead of our 190k and Street's 185k, accelerating partly after the MAX conference but also from resellers seeing early success with the Creative Cloud Team edition. We see the company's target of 1.25m total paid subscriptions by the end of this fiscal year within reach, having crossed the 700k mark in 2Q. We also believe that with 35% of revenue recurring exiting 2Q13 vs. 31% in 1Q13, the 40% target by end of FY13 should be achievable. Reiterate Buy and raise PT to $52 from $50.” Adobe Systems closed on Tuesday at $43.36.