2 Tech Stocks Surging On Impressive Quarterly Updates – Schaeffers Research

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Shares of software stock Adobe Systems Incorporated (NASDAQ:ADBE) and tech accessories producer Logitech International SA (USA) (NASDAQ:LOGI) are rallying today, following the companies’ impressive quarterly updates, with each raising their current-quarter and full-year outlooks. Against this backdrop, we’ll take a closer look at ADBE and LOGI below.

Adobe Stock Analysts Pile On with Bull Notes

Adobe Systems topped out at a record high of $204.45 out of the gate, and was last seen trading up 1.7% at $201.24. Several brokerage firms have weighed in bullishly, with the highest price targets coming from KeyBanc and Credit Suisse, which each set the bar at $225 — representing upside of almost 12%. The latter firm also highlighted the nearly $6 billion in cash Adobe is holding on its balance sheet, suggesting the company could use it to make acquisitions to spur growth and expand its offerings.

The equity now sports a year-over-year advance of almost 81%, so it’s no surprise most analysts are already bullish, with 17 of 24 handing out “strong buy” endorsements. Options traders have also been bullish, given call buying has outpaced put buying in recent weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). During the past two weeks, the February 210 call saw the largest increase in open interest by far, meaning anyone who bought the option is expecting ADBE shares to topple $210 by expiration on Friday, Feb. 16.

LOGI Shares Gap Up After Upbeat Outlook

Meanwhile, Logitech has jumped 6.4% this morning to trade at $40 — just below its July 24 record high of $40.82. The shares have been strong during the past year. After a brief dip below the 200-day moving average last month, the equity has since reclaimed this trendline and then some, now sporting a 12-month gain of 58%.

Today’s big move has failed to attract any analyst attention, however. That could be because most brokerage firms already had this move priced in, based on the average 12-month price target of $46. At the same time, just four analysts are in coverage on the Switzerland-based company, so maybe this technical strength can draw more attention from this group.

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