The firm believes investors are underestimating the San Jose, CA-based software company's ability to grow.
"While the past never guarantees the future, 25 years of successfully navigating this company from successive yet complementary growth markets is one of the best records we know of in business software," the firm said.
Additionally, Adobe is becoming more strategic with its customers and is expected to sign larger deals in the future, according to Canaccord.
"When the frequency of large deal wins accelerates and this dawns on investors, they bid the stock's multiple up," Canaccord said. "If you combine that with the longer-tail growth that we see happening, you have the ingredients for an exceptional long-term investment."
Adobe stock is up by 0.15% to $93.92 in early-morning trading on Thursday.
Separately, recently, 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 rates this stock as a "buy" with a ratings score of A-. 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, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. 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