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Fly News Breaks for June 15, 2018
ADBE
Jun 15, 2018 | 05:16 EDT
JPMorgan analyst Sterling Auty raised his price target for Adobe Systems to $260 from $235 but keeps a Neutral rating on the shares. Last night's Q2 beat was not as clean as recent quarters, Auty tells investors in a research note. Revenue came in ahead of expectations, but the annualized recurring revenue result, a metric typically thought of as a leading indicator, was only inline, the analyst explains. Further, he notes that operating margins were light and the earnings beat really came from below the line items. Auty admits, though, that 32.8% growth in digital media ARR was good, "just not the upside investors have become accustomed to seeing."