Canaccord Is Against The Majority On Adobe Systems: Reiterates Buy

Canaccord's Richard Davis maintains Adobe Systems Incorporated ADBE's Buy rating and continues the firm's price target of $110.00.

"We continue to push back against what seems to be a pervasive belief that Adobe's best days are behind it," said Davis. The analyst cited two reasons for his claim:

• Adobe marketing departments are upgrading their tools
• "Adobe has a fairly unique ability to 'close the loop' between cause and effect with its digital content creation and analytics engine"

Related Link: Slowing Digital Marketing Trend Could Weigh On Adobe Stock

'Favorite Large-Cap Growth Stock'

Additionally, Davis said, "Adobe, as it has done for the previous 20 years of its existence" might make a "relatively material acquisition during the consolidation cycle in the software industry."

This could create a "very short blip" in the stock price and would enhance Canaccord's investment thesis, according to Davis.

At the time of writing, Adobe traded at $94.74, down 4.99 percent on the day.