Wedbush initiates Adobe (NASDAQ:ADBE) with a Neutral rating and a $270 price target, an 8% upside to yesterday’s close.
The firm says Adobe management has “engineered a Picasso-like model transition from its original license roots to a subscription based business” that was “flawless” with “minimal speed bumps.”
Wedbush is neutral on the currently balanced risk/reward on shares but expects ARPU expansion, more price increases, and positive growth catalysts in the next few years.
Upcoming catalysts: This year’s Marketo and Magneto acquisitions will start showing more numbers. The next earnings report is expected in mid-December.
Source: Research note.
Adobe shares are up 1% premarket to $252.92.
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