UBS Reiterates Buy Rating And Raises Adobe Systems Price Target To $85

In a research note issued today, UBS analyst Brent Thill reiterated a Buy rating and boosted his price target on Adobe Systems Inc. (ADBE) to $85.00 (from $80.00).

“After years of hard work designing and executing its playbook, ADBE appears to be entering a stage where user adoption is accelerating and operating leverage is within reach. While the business model is transitioning to a more predictable mix of recurring revs (53% in Q2), driven by subscriptions and term licensing, innovation is quickening, in turn drawing more users and expanding the TAM (last set at ~$35Bn). In the process, we believe ADBE has built one of the best product portfolios for digital content creation & mgmt. and is about to reap the benefits with 18-20% rev growth and 50%+ earnings growth over the next 2 years (FY15 & FY16)”, says Thill.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Brent Thill, who covers ADBE, currently has a one-year average return of 11.2% and a 66% success rate. He is ranked #136 out of 3112 analysts.

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