Equity A nalysis of Adobe Systems. Inc. (ADBE)

Abstract

At Greenleaf Trust, portfolio construction requires a thorough analysis of individual stocks, and is based primarily on a top-down approach. To ensure high returns for the portfolio, this approach takes into account the economy, the respective markets, sectors, industries, and individual investments. Greenleaf applies a dynamic and focused investment approach to individual accounts, which involves continual monitoring of pot1folios and making changes to investment holdings when deemed appropriate. Using all available information, performance prospects and market conditions, the analysts determine which stocks to include in the portfolio to maintain the proper amount of diversification. This disciplined approach to investing enables the research team to make informed decisions regarding the suitability of the current portfolio allocation, to consider the client's needs, and to implement necessary changes to investment portfolios without exposing the accounts to an excessive level of risk. As part of the internship program at Greenleaf, interns work closely with the research team. consisting of Research Analysts and Wealth Management Advisors-to apply these investment approaches to new-client portfolios. The analysts focus on the research of companies, while the advisors implement the trades for the clients. Interns use the summer as a time to research a company of their own choosing, and put together a report to present to the Research Team. I chose to examine Adobe Systems, Inc. (Adobe or the "Company") and reported my findings after a careful analysis of financial statements, risks, and several valuations; I find the Company to stand above most firms in its sector, poised for strong growth. With the Company's current valuation, I recommend purchasing the stock for $40.00 or less.