Adobe Systems Stock Gets More Price-Target Hikes Post-Earnings – Investor’s Business Daily

Digital media and marketing software maker Adobe Systems (ADBE) received severalmore price-target increases to its stock on Thursday in the wake of its beat-and-raise fiscal second-quarter results late Tuesday.

XAutoplay: On | OffAdobe stock got price-target increases on Wednesday from at least four Wall Street firms, with the most bullish being Piper Jaffray, which kept its overweight rating and raised its target to 180 from 160.

Adobe ended trading down 0.4% to 143.69 on the stock market today. On Wednesday, Adobe hit a record high of 147.45.

On Thursday, Morgan Stanley maintained its equal-weight rating on Adobe, but raised its price target to 150 from 137.CFRA stuck withits hold rating on Adobe, but upped its target to 152 from 129. Baird reiterated its outperform rating and increased its price target to 160 from 140. And Canaccord Genuity stayed with a buy rating and hiked its target to 165 from 145.

IBD'S TAKE: Adobe stock has an IBD Composite Rating of 98, meaning it has outperformed 98% of stocks in key metrics over the past 12 months. For more information on Adobe, visit the IBD Stock Checkup.

"Q2 saw continued strong execution in the core top-line growth engines of the Adobe story additions to the annual recurring revenue (ARR) base for Digital Media again exceeded expectations, while revenue growth in the Digital Marketing business trended higher," Morgan Stanley analyst Keith Weiss said in a note to clients. "Current targets for fiscal 2017 look quite conservative."

Adobe is benefiting from its shift to a cloud-computing business model for its creative software, which includes programs like Photoshop and Illustrator. It also is riding a growth curve for its digital marketing business, analysts say.

"We call Adobe one of our secular buy 'compounding' stocks, which means that investors should rationally expect Adobe shares to roughly double within a five-year window," Canaccord analyst Richard Davis said in a note to clients.

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Adobe Systems Stock Gets More Price-Target Hikes Post-Earnings - Investor's Business Daily