Updated from 10:41 a.m. EDT.
NEW YORK (TheStreet) -- Shares of Adobe Systems (ADBE) - Get Adobe Inc. Report were climbing 7.31% to $107.98 on heavy trading volume late Wednesday afternoon after the company reported results for the fiscal 2016 third quarter that topped analysts' estimates and provided a strong fourth quarter outlook.
After yesterday's market close, the San Jose-based software company reported adjusted earnings of 75 cents per share, above Wall Street's projections of 72 cents per share.
Revenue for the quarter was $1.46 billion, which beat analysts' anticipated $1.45 billion.
Adobe expects fiscal 2016 fourth-quarter adjusted earnings per share in the range of 83 cents to 89 cents. Wall Street is looking for earnings of 78 cents per share for the quarter.
JPMorgan raised its price target on the stock to $122 from $110 following the report and maintained an "overweight" rating, the Fly reports.
The firm said that momentum in Adobe's creative cloud and digital marketing units positions the company well for a fourth quarter push.
Canaccord Genuity also increased its price target, to $120 from $110, and reiterated a "buy" rating on Adobe shares in a note this morning.
"We believe Adobe is the definitive leader in digital content creation, and with the emergence of rebound marketing, content has become crucial to marketing success," the firm noted.
The company remains Canaccord's favorite large-cap growth at a reasonable price (GARP) stock recommendation.
More than 7.32 million shares of Adobe have traded so far today vs. the 30-day average volume of 2.08 million shares.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B+.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
You can view the full analysis from the report here: ADBE