Griffin Securities Notes Adobe (ADBE) Creative Cloud Revenue is Rising Faster than Guidance Implies

Griffin Securities analyst Jay Vleeschhouwer reiterated a Buy rating and $620.00 price target on Adobe (NASDAQ: ADBE) while publishing his Cloud picture book that highlighted "a pronounced difference in the layers of total revenue, with Amazon-Microsoft in the upper stratum, then Salesforce, Google, Adobe, Oracle, and SAP."

That said, a key point on Adobe was that the Creative Cloud/Experience Cloud/Document Cloud combined revenues were $3.0 billion, up 22% year/year (excluding Ad Cloud), and up over $200 million sequentially, adjusting for the extra week in Adobe’s 1QFY21. This compares to the FY21 which implies a slower growth rate. He stated "we’re estimating combined Creative Cloud/Experience Cloud/Document Cloud subscriptions revenues of $12.14 billion, up 19% (including the extra week in 1Q21), plus revenues from ETLAs/CCE and services such as Stock. We’re estimating these combined revenues will increase to more than $17 billion by FY24."

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 $567.35 yesterday.

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