Adobe (ADBE) Price Targets to Increase After Mid Dec Earnings - Rosenblatt

Rosenblatt analyst, Kirk Adams, published a note highlighting fundamental points on Adobe's (NASDAQ: ADBE) business and stated an expectation that the average $94 PT is likely to increase when Adobe reports earnings in mid December. Importantly though, there are no factual datapoints on near term demand. No change to $112 PT or Buy rating, notes follow:

ADBE has been very aggressive in garnering new subscriptions with promotions like the Black Friday offering of Adobe CC Photography Plan for 30% off, or $6.99 for the first year.

The Creative Cloud business still represents nearly 2/3 of their current revenue, and Adobe has transformed this business from a mid-single digit grower three years ago to a business that will have a 20% revenue CAGR for the next three years.

Today over 30% of their Creative Cloud subscriptions are to new customers. They have also gone from 5M Adobe ID’s created on mobile in the spring to over 14M today.

The international transition provides legs for over the next few years, as they have just begun to switch to a subscription model. Large markets, like Japan and Germany, will lead the way. Currently, growth outside of the US is over 40% yoy.

For an analyst ratings summary and ratings history on Adobe click here. For more ratings news on Adobe click here.

Shares of Adobe closed at $92.17 yesterday.

You May Also Be Interested In

• Growth isn't weak enough to truly undercut inflation pressures - BMO
• MetroCity Bankshares, Inc. (MCBS) Tops Q1 EPS by 4c
• Comerica (CMA) PT Raised to $54 at Piper Sandler