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With its stock trading within shouting distance of its all-time high, Adobe Systems ( ADBE ) earned a price-target hike on Tuesday from investment bank FBR Capital Markets. Adobe stock was up a fraction to above 93 in midday trading on the stock market today . The provider of cloud-based media and marketing software hit a record high of 98 on March 18. It sports a good IBD Relative Strength Rating of 85, putting it among the top 15% of all stocks in performance the past 12 months. FBR analyst Samad Samana raised his price target on Adobe stock to 115 from 110 and reiterated his market perform rating. He predicts Adobe will see 20%-plus revenue growth and 30%-plus EPS growth for the next two years. Adobe has shifted its business from perpetual license software to software-as-a-service delivered over the Internet. “We believe the transition to a subscription model has yielded a more attractive business model,” Samana said. “We expect this to be reflected in fiscal 2016 and beyond.” Adobe has three cloud computing businesses: Creative Cloud, Marketing Cloud and Document Cloud. The biggest is Creative Cloud, which includes software for creative professionals such as Photoshop, Illustrator and InDesign. Marketing Cloud provides online marketing and advertising services. Document Cloud leverages Adobe’s popular online document-sharing product Acrobat and its ubiquitous PDF format. The company’s Creative Cloud business earns most of the attention, but its Marketing Cloud is maturing at the right time, Samana said. “Digital marketing is at or near the top of the priority list for enterprises, and Adobe appears well positioned to help companies transform their businesses to be more engaging with end customers,” he said in a research report. Adobe should be able to continue posting healthy growth in the digital marketing business despite competition from Alphabet ( GOOGL ), Oracle ( ORCL ), Salesforce.com ( CRM ) and others, he said. RELATED: Adobe Driving Third Wave Of Enterprise Software Disruption Scalper1 News
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