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Fly News Breaks for December 14, 2018
ADBE
Dec 14, 2018 | 07:27 EDT
Canaccord analyst Richard Davis said he believes marketing technology companies such as Adobe (ADBE) could "feel the pinch" if a recession hits, but notes that the firm's macro work does not suggest that to be imminent. Despite headlines implying otherwise, Adobe's Q4 results were strong and topped expectations across the board excluding the financial impact of Marketo, contends Davis, who thinks the company, working in partnership with Microsoft (MSFT), will begin to win a greater share of marketing digital transformation contracts. However, he also sees it being at least 24 months until those wins have the potential to be material. Following Adobe's report, Davis maintains a Buy rating and $290 price target on the shares.