Close

FBR Capital Raises Price target on Adobe Systems (ADBE) Following Analyst Day

October 7, 2015 9:25 AM EDT
Get Alerts ADBE Hot Sheet
Price: $505.91 +0.30%

Rating Summary:
    35 Buy, 17 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

FBR Capital reiterated a Market Perform rating on Adobe (NASDAQ: ADBE), and raised the price target to $87.00 (from $82.00), following an analyst day and MAX user conference. The event concentrated on how Adobe's Cloud Platform and large ecosystem have positioned it to grow its user base and increase enterprise adoption of its products as the digital world transforms.

Analyst Samad Samana commented, "Yesterday, Adobe held an analyst day in conjunction with its MAX user conference. The event concentrated on how Adobe's Cloud Platform and large ecosystem have positioned it to grow its user base and increase enterprise adoption of its products as the digital world transforms. Adobe sized its TAM at $48B in 2018, and provided an update for each of its major product areas (Creative Cloud, Document Cloud, and Marketing Cloud). Adobe's large market opportunity, robust and expanding product set, and investments for growth gave it the confidence to guide to a 20% revenue CAGR and a 30% EPS CAGR from FY15 to FY18. We believe delivering on this combination of top- and bottom-line growth concurrently puts Adobe in a rare class, and that investors should be pleased with the outlook. However, management's FY16 outlook appears noisy due to FX and the impact of the business model shift. That said, we think investors will ultimately look past this and focus on the long-term targets. We maintain our Market Perform rating and raise our price target from $82 to $87, representing 7x EV/revenue and 25x P/FCF using our FY16 estimates."

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 $85.15 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change