Adobe, Salesforce initiations among today’s top calls on Wall Street

Workday and Vizio coverage initiations also among notable calls
Check out today’s top analyst calls from around Wall Street, compiled by The Fly.

‘ONE OF THE CROWN JEWELS OF SOFTWARE’: Wells Fargo analyst Michael Turrin initiated coverage of Adobe (ADBE) with an Overweight rating and $770 price target. The analyst views Adobe as “one of the crown jewels of software,” citing its “solid” core positioning as the de-facto toolkit for creatives, digital tailwinds tied to experience, and its “best-in-class” financial prole of 20%-plus revenue growth and 40%-plus free cash flow margin. Further, he sees a path for 20%-plus earnings expansion “far into the future.”

BUY SALESFORCE, WORKDAY: Wells Fargo analyst Michael Turrin initiated coverage of Salesforce (CRM) with an Overweight rating and $325 price target. The analyst’s diligence “suggests there is more left in the growth tank than meets the eye” for Salesforce. Turrin sees a favorable backdrop for front-office and revenue-generating software, which he thinks “presents room for a catch-up in performance” of the shares.

The analyst also started Workday (WDAY) with an Overweight rating and $320 price target. Workday’s second quarter results helped to “rekindle interest” in back-office software from investors, but the shares have generally lagged as the company’s growth has shown signs of slowing, Turrin said. Nonetheless, his checks suggest that favorable trends – including a rebound in sales activity, uptick in interest from key verticals, and investments into added sales capacity and product – are coming together in a way that he thinks can drive “a healthy multi-year growth curve for Workday moving forward.”

ON THE SIDELINES: Cannonball Research analyst Vasily Karasyov initiated coverage of Vizio (VZIO) with a Neutral rating and $21 price target. The analyst thinks gross profit growth will likely be the only stock price driver in the next twelve months for Vizio. Conditions for a re-rating closer to Roku’s (ROKU) multiple “won’t be in place yet,” Karasyov told investors in a research note.
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