Adobe Systems (ADBE) Stock Closed Higher After Argus Raised Price Target

NEW YORK (TheStreet) -- Shares of Adobe Systems  (ADBE) closed up 3.24% to $82.28 after analysts at Argus today increased their price target to $95 from $85 and maintained their "buy" rating.

The firm cited strong second quarter 2015 results for the price raise.

Last week, Adobe Systems reported revenue of $1.162 billion, or 48 cents per share, compared to revenue of $1.07 billion, or 37 cents per share in the same quarter last year.

The company was expected to report revenue of $1.161 billion, or 45 cents per share, according to analysts polled by Thomson Reuters.

Subscription revenue nearly doubled to $774 million from $477 million, analysts noted.

While the company is undergoing a transition from a perpetual-license business model to a software-as-a-service model, which put pressure on sales of the last couple of years, analysts expect revenue to surge over 2015 and 2016 as the company shapes up its subscription business.

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 multiple 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, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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