Adobe Jumps as Jefferies Upgrades to 'Buy'

NEW YORK ( TheStreet) - Adobe jumped on Wednesday as Jefferies upgraded the stock to a "buy" on the potential of its new Creative Cloud product.

Shares of Adobe ( ADBE) advanced 3% to $45.68 to extend its 2013 gain to 21%.

The equity analysts raised the price target on Adobe shares to $57 from $45. The team, led by Ross MacMillan, anticipates earnings per share to reach $4, compared to $2.35 in 2011. "We think the stock can be worth $57 in the next 18 months," wrote MacMillan in the report.

Jefferies expects that 6.5 million users will switch to the CC program, with subscription prices settling at $40 a month. Revenue is expected to grow by 5% next year, and increase 15% in 2015. These customers will bring in $3.6 billion dollars in Creative revenue.

While Creative Cloud is only starting to gain traction with consumers, Adobe may take on even more customers in the coming months. Creative sources only brought in $2.3 billion in the 2012 fiscal year, the rise illustrate a 50% penetration of non-enterprise users and 10% new adobe consumers. Approximately 1 million subscribers have started using adobe products since the transition.

Written by Robert Arenella in New York

>To contact the writer of this article, click here: Robert Arenella.

More from Technology

Musk's Tweets About Unions Draw Fire From United Auto Workers

Musk's Tweets About Unions Draw Fire From United Auto Workers

PayPal Wants to Consolidate the World of Rewards Points

PayPal Wants to Consolidate the World of Rewards Points

Tesla Just Hit a Pair of Big Milestones for the Model 3

Tesla Just Hit a Pair of Big Milestones for the Model 3

Is Apple Botching Its Autonomous Driving Opportunity?

Is Apple Botching Its Autonomous Driving Opportunity?

Apple Teams With Volkswagen for Autonomous Driving Gig

Apple Teams With Volkswagen for Autonomous Driving Gig