The San Jose-based diversified software company has value beyond the creative cloud transformation, analysts said.
"That [value] appears to be well understood by investors at this point. Our thesis is rooted in the dominance of Adobe's creative tools and extends to include Adobe's unique advantage in digital marketing, as well as the virtuous relationship between these two businesses," analysts said.
Share of Adobe are down 0.23% to $70.28 in pre-market trading.
Separately, TheStreet Ratings team rates ADOBE SYSTEMS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate ADOBE SYSTEMS INC (ADBE) a HOLD. The primary factors that have impacted our rating are mixed--some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."