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Guggenheim: Adobe Summit Focused On Extracting Value From Data

Priya Nigam

Adobe Inc (NASDAQ: ADBE) hosted its annual Summit in Las Vegas earlier this week. The focus was on extracting value from the flood of data being generated by enterprises, according to Guggenheim Securities.

While Adobe seems to have the necessary assets in place, they need to come together for the company to provide a cohesive experience to customers, in the research firm's view. 

The Analyst

Guggenheim Securities’ Ken Wong maintains a Neutral rating on Adobe.

The Thesis

Adobe CEO Shantanu Narayen said customer retention is being the key driver of growth and added that retention requires a keen focus on enhancing customer experiences, Wong said in a Friday note. 

Customers echoed the opinion of Narayen regarding the massive amounts of data being churned out, the analyst said. The company’s Experience Cloud integrates all data being generated from across the enterprise into its Customer Data Platform, he said. 

The Open Data Initiative with Microsoft Corporation (NASDAQ: MSFT) and SAP SE (NYSE: SAP) is “an ambitious step in the right direction” to ease the data burden of customers, Wong said. Adobe Sensei also helps lower this burden by collating huge amounts of data to provide insights to enterprises for shaping their marketing and business strategy, he said. 

Adobe also indicated additional growth investments going forward, according to Guggenheim. Although details were not provided, the company said it will achieve margin expansion alongside growth.

Price Action

Adobe shares were trading up 0.67 percent to $265.30 after the open Friday.  

Related Links: 

Oppenheimer: Adobe Upbeat About Digital Experience Business Momentum

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Latest Ratings for ADBE

Date Firm Action From To
Mar 2019 Canaccord Genuity Maintains Buy Buy
Mar 2019 KeyBanc Downgrades Overweight Sector Weight
Feb 2019 DZ Bank Downgrades Buy Hold

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