NEW YORK (TheStreet) -- Shares of Adobe Systems (ADBE) are rising 0.30% to 79.89 after the software company had its price target raised to $88 from $83 at RBC Capital which maintained its "sector perform" rating.
Potential catalysts to increase the price target are conviction of medium-term earnings power, improvements in ARPU (Average Revenue per User) and revenue growth acceleration in the second half of 2015, RBC Capital noted.
"We continue to believe that Adobe can earn $4.40 per share in 2017 fiscal year, and our estimate of over 10% growth in 2016 to 2017 could prove high in the scale of creative business," RBC Capital analysts said.
Adobe Systems offers products and services for professionals, marketers, application developers, enterprises and consumers for creating, managing, delivering, optimizing and engaging with content.
Separately, TheStreet Ratings team rates ADOBE SYSTEMS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ADOBE SYSTEMS INC (ADBE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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, increase in net income, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company shows weak operating cash flow."