Canaccord Genuity’s Richard Davis raised the price target on Adobe Systems Incorporated ADBE shares by $20 to $145 after the company beat all relevant metrics in its recent quarterly report.
- Adobe Reports Q1 Adj. EPS $0.94 vs $0.87 Est., Sales $1.68B vs $1.65B Est.
- From Adobe Q1 Earnings Conference Call: Sees Q2 Sales ~$1.73B vs $1.72B Est., Adj. EPS ~$0.94 vs $0.91 Est.
Davis noted that Adobe’s Digital Media ARR of $265 million was strong, driven by Creative Cloud. The analyst Adobe’s second quarter guidance of $1.73 billion and EPS of $0.94 could be conservative given the company’s track record.
Davis, who has a Buy rating on the shares, is bullish on Adobe as the company has in the midst of two important trends: “Everyone is a content creator” and “brand data is exploding.”
Strength Of Adobe
The analyst said Adobe helps the enterprises deliver the right content to the right endpoint device at the right time.
“The power of that combination is what has, and we believe will, organically expand Adobe’s addressable market meaningfully beyond the outdated view that Adobe is simply a “model flip” story whose growth will come to a screening halt once the upgrade cycle/ forced higher module attach rate penetration passes the 2/3rds of the customer base,” Davis wrote in a note.
Shares of Adobe closed Thursday at $122.35. In the pre-market hours Friday, the stock is up 5.19 percent to $128.70, a new 52-week high for the stock.
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