Adobe Systems (ADBE) Is Our Top Enterprise Software Pick - Cowen

Cowen analyst, Derrick Wood, reiterated his Outperform rating on shares of Adobe (NASDAQ: ADBE) and reiterated it as his top pick in Enterprise Software. The analyst believes investors are overly concerned with what will happen to the stock when growth slows after the positive benefit from the cloud migration are fully realized.

The analyst is not concerned for two reasons:
1) he thinks the growth cycle on the Creative Cloud is going to last longer than people expect
2) his analysis shows that companies with monopoly-like characteristics on certain market segments, valuations don't compress much when top line growth moderates due to the high cash flow margins on very sticky revenue streams, leading to high earnings visibility

No change to the price target of $120.

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 $101.55 yesterday.

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