Adobe Systems (NASDAQ: ADBE) rose more than eight percent to an all-time high Wednesday after beating the second-quarter consensus, while analysts pondered the performance.
At issue is the investment value of rapid subscription growth in the company's Cloud segment. Adobe expects the business will drive a 20 percent annual revenue increase over the next several years.
Adobe released the latest version of its Creative Cloud product Wednesday.
"They're firing on all cylinders," Deutsche Bank Nandan Amladi said in a research note, in which he maintained a Buy rating and raised his price target six percent to $80 a share.
Amladi called the shares "still attractive, on a growth-adjusted basis."
But although a transition from subscription revenue from licensing might drive earnings growth to 50 percent in 2015, "we see this as already priced in" to Adobe shares, Morgan Stanley analyst Jennifer Swanson Lowe said in a note.
Lowe maintained a Neutral rating on Adobe and offered no price target.
Also at Neutral, Credit Suisse analyst Philip Winslow said although Adobe's outlook is encouraging, "much of this enthusiasm is captured in Adobe's current valuation."
Winslow raised his price target to $70 per share, from $60.
Adobe traded recently at $73.03, up 8.13 percent.
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