Stifel analyst Tom Roderick raised the price target on Adobe (NASDAQ: ADBE) to $350.00 (from $325.00) while maintaining a Buy rating after 4Q19 Total Revenue of $2.992bn (+21% y/y) beat consensus of $2.973bn. Non-GAAP EPS of $2.29 came in 3c ahead of consensus fueled by a non-GAAP gross margin of 87.2% and non-GAAP operating margin of 42.6%.

The analyst believes Adobe's 4Q19 earnings results offered a handy reminder that not all software companies are built to withstand choppy waters and stated "the company is much more "aircraft carrier" than "leaky sailboat", as the company put up a solid beat around the horn while holding guidance intact for FY20. Since reporting 3Q19 results back in September and highlighting some unexpected challenges in Experience Cloud (particularly Marketo) at the time, the company was able to turn things around in that segment in a rapid manner, completing FY19 with 20% Experience Cloud bookings growth and 31% overall EC revenue growth. Meanwhile, the core of the Adobe franchise - Digital Media - grew 22% by revenue and 24% by ARR".