Shares of Adobe Systems Inc. were trading down 5% Wednesday morning, a day after the company beat earnings expectations, but had weaker than expected results in its booked business segments. Canaccord Genuity analyst Richard David urged investors to look past that decline however and raised his price target to $170 from $165, saying “Adobe did not suddenly see the industry’s best competitive moat disappear, nor did competitive products miraculously merge to disrupt the firm.” David says he is not concerned about the fundamentals, but rather the ability of the company’s salespeople to convince clients that the firm can be a strategic partner and thus get larger $1 million deals. Davis reiterated a buy rating on the stock. Shares of Adobe have gained 6% in the past three months, outperforming the S&P 500 , which has gained 3%.
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