Pacific Crest Reiterates a Buy Rating on Adobe

By Ryan Adsit

In a report released yesterday, Brent Bracelin from Pacific Crest reiterated a Buy rating on Adobe (NASDAQ: ADBE), with a price target of $122. The company’s shares opened today at $106.54, close to its 52-week high of $111.09.

Bracelin wrote:

“We see 16% upside to our $122 target with further upside potential once we start to roll out targets based on 2018 estimates.”

According to TipRanks.com, Bracelin is a 1-star analyst with an average return of -1.0% and a 51.2% success rate. Bracelin covers the Technology sector, focusing on stocks such as Riverbed Technology, Tyler Technologies, and CommVault Systems.

Currently, the analyst consensus on Adobe is Moderate Buy and the average price target is $119, representing an 11.7% upside.

In a report issued on October 31, UBS also reiterated a Buy rating on the stock with a $130 price target.

Based on Adobe’s latest earnings report from August 31, the company posted quarterly revenue of $1.46B and quarterly net profit of $270.8M. In comparison, last year the company earned revenue of $1.22B and had a net profit of $174.5M.

Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2016, Daniel Rosensweig, a Director at ADBE sold 13,000 shares for a total of $1,396,330.

Adobe Systems, Inc. provides digital marketing and digital media solutions. The company operates its business through three segments: Digital Media, Digital Marketing, and Print and Publishing. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat. This segment also offers other tools and services, including hobbyist products, such as Adobe Photoshop Elements and Adobe Premiere Elements, Adobe Digital Publishing Suite, Adobe PhoneGap, Adobe Typekit, as well as mobile apps, such as Adobe Photoshop Mix, Adobe Photoshop Sketch and Adobe Premiere Clip that run on tablets and mobile devices. The Digital Media serves professionals, including graphic designers, production artists, web designers and developers, user interface designers, videographers, motion graphic artists, prepress professionals, video game developers, mobile application developers, students and administrators. The Digital Marketing segment offers various solutions, including analytics, social marketing, targeting, media optimization, digital experience management and cross-channel campaign management, as well as premium video delivery and monetization. This segment also offers legacy enterprise software, such as Adobe Connect web conferencing platform and Adobe LiveCycle. The Print and Publishing segment offers legacy products and services for eLearning solutions, technical document publishing, web application development and high-end printing. Adobe Systems was founded by Charles M. Geschke and John E. Warnock in December 1982 and is headquartered in San Jose, CA.