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Wunderlich Takes Adobe Price Target To $165 Following Q2 Earnings

Wunderlich Takes Adobe Price Target To $165 Following Q2 Earnings
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After a strong Q2 earnings report, Wunderlich analyst Ryan MacDonald reiterated his Buy rating on Adobe Systems Incorporated (NASDAQ: ADBE) and raised his price target from $145 to $165 .

A Closer Look At Q2

Revenue: $1.77 billion vs. $1.73 billion consensus (86 percent comes from recurring sources)

  • EPS: $1.02 vs. $0.95 consensus
  • Digital Media: $1.21 billion vs. $1.17 billion consensus
  • Digital Marketing: $516.7 million vs. $514.3 million consensus
  • Creative Revenue: Up 34 percent year over year
  • Cloud Revenue: Up 29 percent year over year

Looking Ahead

“Heading into 2H17," MacDonald said in a note, "the company is experiencing strong momentum with positive trends in Stock, Video, Acrobat, and Analytics, while Ad Cloud remains in the early stages. We continue to believe a premium valuation is warranted with Adobe’s combination of 20%+ growth and 35%+ operating margin."

Adobe raised Q3 guidance as management expects to see further growth across many sectors of its business, specifically highlighting Digital Media ARR and Experience Cloud sectors.

Adobe was trading up over 3 percent at $145.50 during Wednesday’s pre-market session.

To read more about Adobe’s Q2 earnings report and what to watch out for, visit Benzinga Pro.

See Also:

Adobe's Q2 Earnings: Expect Creative Cloud Unit To Drive Strength

Adobe Attempts To Recover From Pivotal Downgrade

Latest Ratings for ADBE

Dec 2017Morgan StanleyMaintainsEqual-Weight
Dec 2017JP MorganDowngradesOverweightNeutral
Nov 2017KeyBancMaintainsOverweightOverweight

View More Analyst Ratings for ADBE
View the Latest Analyst Ratings

Posted-In: Ryan MacDonald WunderlichAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


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