Adobe Systems (ADBE) Upgraded to “Buy” by Zacks Investment Research

Adobe Systems (NASDAQ:ADBE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The firm presently has a $215.00 price target on the software company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 11.12% from the company’s previous close.

According to Zacks, “Adobe has outperformed the industry it belongs to in the last one year. Adobe has been making great efforts toward establishing its presence in cloud-related software areas such as documents and marketing. Adobe Experience Manager, which enables brands to offer a personalized experience, is also witnessing robust growth. Year to date, the stock has outperformed the industry it belongs to. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud.  Also, its acquisition of TubeMogul will help the company to build its position in the expanding Digital Marketing space. However, end-market recovery appears slow which remains a matter of concern.”

A number of other research firms have also weighed in on ADBE. Evercore ISI reaffirmed a “buy” rating and issued a $220.00 price objective on shares of Adobe Systems in a research note on Friday, January 26th. Royal Bank of Canada upped their price objective on shares of Adobe Systems to $208.00 and gave the stock an “outperform” rating in a research note on Tuesday, January 23rd. Stephens reaffirmed a “buy” rating and issued a $215.00 price objective on shares of Adobe Systems in a research note on Tuesday, January 23rd. Guggenheim reaffirmed a “buy” rating and issued a $230.00 price objective on shares of Adobe Systems in a research note on Tuesday, January 23rd. Finally, Barclays upped their price objective on shares of Adobe Systems from $193.00 to $221.00 and gave the stock an “overweight” rating in a research note on Tuesday, January 23rd. Eight analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and one has given a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average target price of $198.15.

Adobe Systems (ADBE) traded up $1.33 during midday trading on Tuesday, hitting $193.48. 1,960,000 shares of the stock were exchanged, compared to its average volume of 2,810,000. The company has a current ratio of 2.05, a quick ratio of 2.05 and a debt-to-equity ratio of 0.22. The company has a market capitalization of $95,110.00, a PE ratio of 57.07, a PEG ratio of 2.30 and a beta of 1.18. Adobe Systems has a 12-month low of $116.20 and a 12-month high of $204.45.

Adobe Systems (NASDAQ:ADBE) last posted its quarterly earnings results on Thursday, December 14th. The software company reported $1.26 EPS for the quarter, topping the Zacks’ consensus estimate of $1.16 by $0.10. Adobe Systems had a net margin of 23.20% and a return on equity of 22.15%. The firm had revenue of $2.01 billion for the quarter, compared to analysts’ expectations of $1.95 billion. During the same period in the prior year, the business posted $0.90 earnings per share. The business’s revenue for the quarter was up 24.8% on a year-over-year basis. research analysts forecast that Adobe Systems will post 5.12 earnings per share for the current year.

In other news, CFO Mark Garrett sold 54,488 shares of the firm’s stock in a transaction that occurred on Tuesday, February 6th. The shares were sold at an average price of $187.38, for a total transaction of $10,209,961.44. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Ann Lewnes sold 1,953 shares of the firm’s stock in a transaction that occurred on Wednesday, December 13th. The stock was sold at an average price of $173.50, for a total transaction of $338,845.50. Following the sale, the executive vice president now directly owns 50,497 shares in the company, valued at approximately $8,761,229.50. The disclosure for this sale can be found here. In the last quarter, insiders sold 351,199 shares of company stock worth $67,326,422. 0.38% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Polen Capital Management LLC grew its stake in shares of Adobe Systems by 1.2% during the 4th quarter. Polen Capital Management LLC now owns 6,362,305 shares of the software company’s stock worth $1,114,930,000 after purchasing an additional 73,489 shares during the period. Ameriprise Financial Inc. grew its stake in shares of Adobe Systems by 9.7% during the 3rd quarter. Ameriprise Financial Inc. now owns 5,543,635 shares of the software company’s stock worth $826,991,000 after purchasing an additional 488,904 shares during the period. Arrowstreet Capital Limited Partnership grew its stake in shares of Adobe Systems by 2.4% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 5,368,796 shares of the software company’s stock worth $940,828,000 after purchasing an additional 128,148 shares during the period. Geode Capital Management LLC grew its stake in shares of Adobe Systems by 3.3% during the 4th quarter. Geode Capital Management LLC now owns 5,197,567 shares of the software company’s stock worth $908,904,000 after purchasing an additional 165,632 shares during the period. Finally, Wells Fargo & Company MN grew its stake in shares of Adobe Systems by 2.1% during the 3rd quarter. Wells Fargo & Company MN now owns 2,956,394 shares of the software company’s stock worth $441,035,000 after purchasing an additional 59,616 shares during the period. 86.76% of the stock is currently owned by institutional investors and hedge funds.

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Adobe Systems Company Profile

Adobe Systems Incorporated is a software company. The Company offers products and services used by professionals, marketers, knowledge workers, application developers, enterprises and consumers for creating, managing, delivering, measuring, optimizing and engaging with compelling content and experiences.

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