Why Adobe Is Worth $70 Per Share

The stock has rallied from $70 in January to its current market price of over $77. This translates into a return of over 10% in the last month alone. While we have recently revised our price target from $62 to $70, we believe that the current market valuation of Adobe is stretched, even though the company has significantly improved its Creative Cloud offering by extending functionality to mobile developers and strengthened its digital marketing portfolio through timely launches.