Adobe Systems (ADBE) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Adobe Systems (NASDAQ:ADBE) from a hold rating to a buy rating in a report published on Tuesday morning. Zacks Investment Research currently has $267.00 price target on the software company’s stock.

According to Zacks, “Adobe’s top-line will continue to benefit from strong demand for the company’s innovative solutions and growing subscriptions for its cloud application. It 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. We remain optimistic about Adobe’s market position, compelling product lines, continued innovation, solid adoption of Creative Cloud and Adobe marketing cloud. However, end-market recovery appears slow which remains a matter of concern.”

Other equities analysts also recently issued research reports about the company. Argus increased their price target on Adobe Systems from $195.00 to $234.00 and gave the company a buy rating in a report on Tuesday, January 30th. Evercore ISI reiterated a buy rating and set a $220.00 price target on shares of Adobe Systems in a report on Friday, January 26th. Guggenheim reiterated a buy rating and set a $230.00 price target on shares of Adobe Systems in a report on Tuesday, January 23rd. Stephens reiterated a buy rating and set a $215.00 price target on shares of Adobe Systems in a report on Tuesday, January 23rd. Finally, Canaccord Genuity reiterated a buy rating and set a $220.00 price target (up previously from $195.00) on shares of Adobe Systems in a report on Tuesday, January 23rd. Ten research analysts have rated the stock with a hold rating, twenty-four have given a buy rating and one has assigned a strong buy rating to the company’s stock. Adobe Systems currently has a consensus rating of Buy and an average target price of $219.50.



Shares of Adobe Systems opened at $236.85 on Tuesday, Marketbeat.com reports. Adobe Systems has a 12 month low of $235.84 and a 12 month high of $237.36. The company has a debt-to-equity ratio of 0.22, a quick ratio of 2.12 and a current ratio of 2.12. The company has a market cap of $116.91 billion, a price-to-earnings ratio of 65.97, a P/E/G ratio of 2.74 and a beta of 1.04.

Adobe Systems (NASDAQ:ADBE) last announced its quarterly earnings results on Thursday, March 15th. The software company reported $1.55 EPS for the quarter, beating the consensus estimate of $1.44 by $0.11. Adobe Systems had a return on equity of 24.42% and a net margin of 24.40%. The company had revenue of $2.08 billion for the quarter, compared to the consensus estimate of $2.05 billion. During the same quarter last year, the company posted ($0.43) earnings per share. The company’s revenue for the quarter was up 23.6% compared to the same quarter last year. sell-side analysts anticipate that Adobe Systems will post 5.35 earnings per share for the current fiscal year.

In other Adobe Systems news, Director John E. Warnock sold 5,000 shares of Adobe Systems stock in a transaction on Tuesday, March 20th. The shares were sold at an average price of $224.94, for a total transaction of $1,124,700.00. Following the sale, the director now owns 16,088 shares in the company, valued at $3,618,834.72. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Ann Lewnes sold 2,940 shares of Adobe Systems stock in a transaction on Thursday, March 22nd. The stock was sold at an average price of $223.86, for a total transaction of $658,148.40. Following the sale, the executive vice president now owns 76,201 shares in the company, valued at approximately $17,058,355.86. The disclosure for this sale can be found here. Insiders have sold 46,819 shares of company stock worth $10,451,729 in the last quarter. Corporate insiders own 0.33% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the business. Nvwm LLC lifted its holdings in shares of Adobe Systems by 5.8% during the first quarter. Nvwm LLC now owns 5,848 shares of the software company’s stock valued at $1,242,000 after acquiring an additional 323 shares during the period. Marvin & Palmer Associates Inc. lifted its holdings in shares of Adobe Systems by 51.5% during the first quarter. Marvin & Palmer Associates Inc. now owns 22,060 shares of the software company’s stock valued at $4,767,000 after acquiring an additional 7,497 shares during the period. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp lifted its holdings in shares of Adobe Systems by 3.7% during the first quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 200,600 shares of the software company’s stock valued at $43,346,000 after acquiring an additional 7,200 shares during the period. Mark Asset Management Corp lifted its holdings in shares of Adobe Systems by 1.4% during the first quarter. Mark Asset Management Corp now owns 47,221 shares of the software company’s stock valued at $10,204,000 after acquiring an additional 661 shares during the period. Finally, PointState Capital LP lifted its holdings in shares of Adobe Systems by 2,178.0% during the first quarter. PointState Capital LP now owns 1,100,014 shares of the software company’s stock valued at $237,691,000 after acquiring an additional 1,051,726 shares during the period. Hedge funds and other institutional investors own 86.80% of the company’s stock.

About Adobe Systems

Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. This segment's flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products.

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