Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

RiverPark Is Bullish On Adobe Systems (NASDAQ: ADBE). Should You Be Too?

The RiverPark Large Growth Fund is bullish on Adobe Systems Incorporated (NASDAQ:ADBE). In its Q1 investor letter (you can download a copy here), the fund discussed Adobe, saying that the company is poised to benefit from the growing market for digital advertising solutions. The letter also included the investor’s viewpoint about Amazon – we have already covered it in another article. In this article, our focus is on RiverPark’s comments about Adobe.

So, here is everything that RiverPark said about the creative software provider for design, print, media and web.

Adobe shares continued their recent string of strong performance as the company reported a strong first quarter, exceeding expectations across every important metric. Revenues grew 24% year-over-year to a record $2.1 billion driven by digital media revenue, which grew 28% year-over-year, while the company’s more mature Digital Experience division (formerly Marketing) still grew 16% year-over-year.

The company continued to demonstrate operating leverage as operating margins expanded 570 bps to an impressive 41.9%, which, in turn, contributed to EPS growth of 65% year-over-year.  In addition, the company’s cash balance grew to more than $6.1 billion, the majority of which is held offshore, which, given the new tax law, management intends to deploy more aggressively to both drive future growth as well as accelerate capital returns to shareholders.

We remain bullish on Adobe’s growth opportunities, as the market for digital advertising solutions globally continues to expand and the company’s execution and expense control remain best in class in its industry.

We trimmed our position on strength during the quarter, and ADBE remains a core holding in the portfolio.

part time medical writing job

wavebreakmedia/Shutterstock.com

Systems Incorporated (NASDAQ: ADBE) is a popular stock among hedge funds tracked by Insider Monkey. As of the end of 2017, there were 62 funds in our database with positions in the company. Among those funds were Suvretta Capital Management, Asturias Capital, and Junto Capital Management.

If we look at Adobe’s performance on the share market, the stock has been moving upward since the start of the year. Over the past three months, the share price has increased nearly 18%, while the stock has moved up more than 71% over the past 12 months.

Based on ratings of analysts polled by FactSet, ADBE is ‘Overweight’. The consensus average target price of the stock is $246.31. On Friday, ADBE was closed up 0.52% at $238.09.

Investors looking for opportunities in the Computer and Technology space should track Adobe Systems Incorporated (NASDAQ: ADBE). The company has been delivering a solid performing on the stock market, and people who track it strongly believe that the stock will continue this performance in the coming months.

Disclosure: none

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...