Adobe Inc. (ADBE)

[winston]

not vested

THE CLOUD 'MEGA TREND' IS A GAME-CHANGER FOR THIS COMPANY

Today, we're checking in on a massive trend in the technology sector...

As time goes on, more and more data is being stored on the "cloud." This means it's hosted remotely through the Internet rather than being housed on folks' personal computers.

Research firm Gartner predicts the cloud-services industry will grow roughly 50% to more than $330 billion in 2022. And today's company has positioned itself to take advantage of this massive trend...

Adobe (ADBE) is a $160 billion software giant. It boasts popular graphic-design and editing products like Photoshop and Acrobat.

Over the past few years, it has shifted from packaged software to a cloud-based model. And the shift has done great things for Adobe's business... In the most recent quarter, it reported sales just shy of $3 billion, almost all of which was from its cloud subscription offerings.

The shift is paying off for ADBE's stock, too. Shares have more than tripled over the past five years, and they just hit a new all-time high. It's more proof of the gains that are possible when you invest in "mega trends" like the cloud...

Source: Daily Wealth

[winston]

not vested

Adobe Inc.: Paying for quality

Adobe is a leading provider of software solutions for creative and marketing professionals.

The company’s 3 main operating segments are
(a) digital media content creation,
(b) digital experience, and
(c) publishing for legacy products.

Digital experience, in particular, should benefit from significant cross-selling opportunities, given the stickiness of creative professionals to Adobe’s products.

The company enjoys highly profitable and predictable revenue streams, large TAMs and exposure to secular growth trends, particularly in digital transformation and digitization of content.

We believe that Adobe is one of the few companies that can hold its own in the face of general investor concern around financial sustainability of SaaS companies.

Adobe has a consensus 2FY FCF margin of 38.6% and 88.0% adj. gross margin, which is notably higher than that of peers.

Revenue has grown at a CAGR of 22% over a 5-year period from FY14 to FY19, while Non-GAAP EPS has grown by 43% CAGR over the same time period.

Adobe has a strong liquidity position of $4.2b of cash and short term investments, and $1.0b unutilized credit facility, which remains available till 2023 (as of Q4FY19).

With these in mind, it is understandable that Adobe trades at a BF EV/FCF or P/E of 35.8x and 39.0x, respectively, which are >2 S.D. above the 3-year mean.

We acknowledge the possibility of a near-term pull-back, given the run-up in prices, but recommend adding on dips for investors with a longer-term horizon.

Based on a target 41x target P/E peg on what we believe to be a more cautious FY21F Non-GAAP EPS of $11.2, we derive a FV of $458. BUY.

Source: OCBC

[winston]

THIS SOFTWARE LEADER HAS QUADRUPLED IN LESS THAN FOUR YEARS

Today's company is winning big as folks socially distance...

Amid the coronavirus lockdown, millions of people abruptly found themselves exclusively working from home and shopping only online. This change has been a tailwind for cloud-based software providers, since so many people must connect, collaborate, and shop through the Internet. And today's company is a leader in that industry...

Adobe (ADBE) is a $210 billion software company. Its products let you create and edit PDF documents, design websites, edit videos and images, or sell products online.

Customers buy subscriptions to Adobe's products and can use them on any computer, anywhere. And folks need that more than ever today. Adobe sales hit a record $3.1 billion in the most recent quarter, up 14% year over year.

ADBE shares are up about 370% over the past four years, and they recently hit a new all-time high. As people get used to working remotely, demand for Adobe's software will only get stronger...

Source: Daily Wealth

[winston]

Adobe Inc. (ADBE US) - Genie not going back into the bottle

Adobe is a leading provider of software solutions for creative and marketing professionals.

The company’s 3 main operating segments are
(a) digital media content creation
(b) digital experience and
(c) publishing for legacy products.

Digital experience, in particular, should benefit from significant cross-selling opportunities, given the stickiness of creative professionals to Adobe’s products.

The company enjoys highly profitable and predictable revenue streams, large TAMs and exposure to secular growth trends, particularly in digital transformation and digitization of content. BUY.

Source: OCBC

[winston]

not vested

Adobe Inc. (ADBE US) - Just beat it

Adobe is a leading provider of software solutions for creative and marketing professionals.

The company’s 3 main operating segments are:-
(a) digital media
(b) digital experience and
c) publishing and advertising.

Digital experience, in particular, should benefit from significant cross-selling opportunities, given the stickiness of creative professionals to Adobe’s products.

The company enjoys highly profitable and predictable revenue streams, large TAMs and exposure to secular growth trends, particularly in digital transformation and digitization of content. BUY.

Source: OCBC

[winston]

not vested

WE'RE SEEING NEW ALL-TIME HIGHS IN CLOUD TECHNOLOGY

Today, we're highlighting another winner from the trend in cloud-based technology...

Regular readers know that long before the pandemic, businesses and technologies were moving online. Folks began to access data and software remotely over "the cloud," making remote collaboration easy...

And COVID-19 has only accelerated that trend. Today's company is winning out as cloud-based products take off...

Adobe (ADBE) is a $300 billion software giant. Its products include things like Acrobat, for editing PDF documents, and Dreamweaver, for building websites. Through its cloud-based subscriptions, customers can use their accounts on any computer – which has helped folks work from home.

In its latest quarter, Adobe reported revenue up 23% year over year to more than $3.8 billion. And it had a record $2 billion cash flow from operations.

As you can see, ADBE shares are in a strong uptrend. Over the past five years, they're up an incredible 535%, and they recently hit new all-time highs.

As the pandemic accelerates the trend of moving to the cloud, this trend should continue...

Source: Daily Wealth

[winston]

not vested

Analysts Reel In Targets For Adobe But It’s Still A Buy

by Thomas Hughes

The new Pricetargets.com consensus price target for Adobe is $612 and 31% above the recent price action but we think it will come down a bit more before the reporting cycle.

As for the Q1 results, the company produced $4.26 billion in net revenue for a gain of 9% over last year and a company record.

It is due in large part to business in Russia, Belarus, and Ukraine, business that has been completely written off. The company estimates the business to be worth $75 million in F22 or about 45 basis points of Q1 revenue.

Source: Analyst Price Targets

https://www.pricetargets.com/news/analy ... rID=418897

[winston]

not vested

This Stock Could Rally 20% After This Dip

by Nicolas Chahine

Source: Investor Place

https://tradesoftheday.com/2022/03/24/t ... -this-dip/

[behappyalways]

How Adobe Became One of America’s Most Valuable Tech Companies | The Economics Of | WSJ
https://m.youtube.com/watch?v=wc3JoMwVqL4

[winston]

not vested

ADOBE INC. (ADBE US)

Recommendation : HOLD
Fair Value : USD 585.00

POSITIVE REVIEWS OF FIREFLY IMPROVE MONETISATION OPPORTUNITY .

Eventual monetisation of ADBE’s generative AI tool Firefly, could provide upside to growth estimates

Conservative financial estimates leave room for growth upside; revise fair value (FV) from USD510 to USD585

Adobe Inc. (Adobe) is a leading provider of software solutions for creative and marketing professionals.

The company’s 3 main operating segments are:-
(i) digital media
(ii) digital experience and
(iii) publishing and advertising.

Digital experience segment should benefit from significant cross-selling opportunities, given the stickiness of creative professionals to Adobe’s products.

The company enjoys highly profitable and predictable revenue streams, large total addressable markets, and exposure to secular growth trends, particularly in digital transformation and digitisation of content.

Adobe has also launched its own generative AI (artificial intelligence) product, Adobe Firefly, which allows users to create images and videos using text prompts, improving users’ productivity.

We believe the adoption of strong productivity tools such as generative AI features should
protect and enhance Adobe’s economic moat.

Source: OCBC