Adobe (ADBE) - Get Adobe Inc. Report shares on Friday were higher after its fiscal fourth-quarter earnings exceeded expectations, a report that prompted a Canaccord analyst to raise his price target on the graphics-software company.
Analyst Richard Davis rated the San Jose company a buy and lifted his price target to $350 from $320.
At last check, Adobe shares were 4.6% higher near $320.
“The fiscal fourth-quarter came in a bit better than expected, and targets for next year were reiterated across the board," the analyst said in a note. “Cash-flow generators that deliver growth at scale, such as Adobe, will deliver attractive risk-adjusted returns in this market environment.”
Adobe has built its franchise on acquisitions but shies away from paying big premiums for companies.
Davis suggests that Adobe will continue in acquisitive mode.
But five possible targets “make sense” for Adobe, Davis says: Zendesk (ZEN) - Get Zendesk Inc. Report, HubSpot (HUBS) - Get HubSpot Inc. Report, Medallia (MDLA) - Get Medallia, Inc. Report, SurveyMonkey (SVMK) - Get SVMK, Inc. Report and Yext (YEXT) - Get Yext Inc. Report.