UBS Raises Price Target on Adobe Systems (ADBE) Following Solid 3Q
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
UBS reiterated a Buy rating on Adobe Systems (NASDAQ: ADBE), and raised the price target to $130.00 (from $122.00), following the company's 3Q earnings report.ADBE reported revenue of $1464M, ahead of $1,445M estimates. EPS of $0.75 came in 0.03 ahead of estimates.
Analyst Brent Thill commented, "We believe strong results across all Clouds + oper. leverage showed ADBE stock still has room to run despite being near record levels. We are raising our 12-mo PT from $122 to $130, using same 30x P/E (PEG 1.0x) on EPS in 5-8 Qs, which may still be conservative. We think the stock could reach $150 if EPS hits $6 in FY19 (current UBSe $5.68) on a muted 25x P/E vs. current 29x NTM. What is driving momentum for each segment (details in next bullet)? Creative Cloud: still room in base migration + adding new users; renewal at full price from discounted; Japan & Germany above pace; Fotolia/Stock x-sells; and digital content explosion across web & mobile. Document Cloud: fast migration to subs. Marketing Cloud: Clients looking for digital transformation choosing leader ADBE (43% share among large vendors) with broadest suite – accelerating deals in Q3 and buying multiple modules; int'l still a big opp. Next catalyst is MAX user conf. on Nov 2-4 (analyst day on 11/2), when we could get an early view into FY17 outlook."
Shares of Adobe closed at $100.62 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMO Capital Raises Price Target on ManpowerGroup (MAN) Following 3Q Surprise
- Two Reasons Alphabet (GOOG) Could Outperform After Earnings - Nomura
- UPDATE: Seaport Global Securities Starts Union Pacific (UNP) at Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!