Jefferies Believes Adobe (NASDAQ: ADBE) Still Has Room to Grow

By Austin Angelo

Jefferies analyst Brent Thill reiterated a Buy rating on Adobe (NASDAQ: ADBE) on August 24 and set a price target of $175. The company’s shares closed on Friday at $151.45, close to its 52-week high of $153.

Thill commented:

“The ADBE story features the best of both internet and software sectors – highly predictable and profitable revenue streams, vast open-ended TAM, and exposure to broad tech trends. ADBE is levered to major internet themes, incl. the digitization of content and entire off-line businesses, the shift to mobile platforms, and the consumption of video across new channels. Valuation does not give full credit to its superior growth, in our view. Stock up 5x since late 2011, and more to go. Adobe was rewarded for being one of the first tech cos to transition to a subscription model, and we believe the stock has more room to run.”

Thill has an average return of 33.5% when recommending Adobe.

According to, Thill is ranked #39 out of 4619 analysts.

Currently, the analyst consensus on Adobe is Moderate Buy and the average price target is $159, representing a 5.0% upside.

In a report issued on August 22, BMO Capital also reiterated a Buy rating on the stock with a $165 price target.

The company has a one year high of $153 and a one year low of $97.87. Currently, Adobe has an average volume of 2.25M.

Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock.

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Adobe Systems, Inc. engages in the provision of digital marketing and digital media solutions. It operates through the following segments: Digital Media, Digital Marketing, and Print and Publishing.