FBR Capital Raises Price Target on Adobe Systems (ADBE) After Hosting Investor Meetings

FBR Capital reiterated a Market Perform rating on Adobe Systems (NASDAQ: ADBE), and raised the price target to $115.00 (from $100.00), after hosting investor meetings with management. The company noted its efforts in building a breadth of functionality and making all of the individual pieces work together more seamlessly are paying off in the form of 30%-plus bookings growth. Adobe appears well positioned to help companies transform their businesses to be more engaging with end customers. Overall, FBR walked away from the meetings with more confidence in company.

Analyst Samad Samana commented, "We recently hosted a day of investor meetings with Adobe's CFO, Mark Garrett, and VP, Investor Relations, Mike Saviage. A wide array of topics were covered, including the large remaining opportunity to convert existing Creative Suite users to the Creative Cloud, the recent quarterly results (subs, ARPU, ARR, etc.), management's takeaways from the Digital Marketing Summit, the competitive environment, and margin expansion. Two areas where investors showed significant interest that we want to highlight are the factors contributing to robust Marketing Cloud bookings growth and the expected ramp in investments. Overall, we walked away confident Adobe is experiencing healthy demand and that it can achieve 20%-plus total revenue growth and 30%-plus EPS growth in FY16. We are raising our price target from $100 to $115, representing a P/E multiple of 30x using our FY17 EPS estimate."

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 $92.95 yesterday.

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