Piper Jaffray maintained an 'outperform' rating on Adobe Systems
Citing a "strong product year" ahead, Piper Jaffray senior research analyst Gene Munster maintained an "outperform" rating on Adobe Systems.
The company will announce first-quarter fiscal 2006 financial results on March 22.
The analyst's end-of-the-quarter checks indicated a slight upside to the consensus estimate of 29 cents on revenue of $650 million but within the company's earnings guidance range of 28 cents to 30 cents on revenue of $630 million to $660 million.
Going forward, Munster believes the company is entering a strong product year with Macromedia's Studio 8 and the planned launch of Adobe/Macromedia product bundles and the release of Acrobat 8 expected in the fall. In addition, the analyst said that Adobe will likely begin shipping CS3 next spring.
The analyst said that distributors were mixed on Macromedia as an Adobe product.
"Half said that their Macromedia business is going better than expected, while the other half indicated that their Macromedia business is either what they would have expected, or below expectations," the analyst explained.
That said, the positives of Adobe's acquisition of Macromedia appear "long term in nature," while the negatives will likely be overcome in the near term as Adobe's representatives get a better hold on Macromedia, he added.
The analyst maintained a price target of $45 on Adobe shares. He is estimating 2006 and 2007 earnings per share of $1.27 and $1.45, respectively.
Citing a "strong product year" ahead, Piper Jaffray senior research analyst Gene Munster maintained an "outperform" rating on Adobe Systems.
The company will announce first-quarter fiscal 2006 financial results on March 22.
The analyst's end-of-the-quarter checks indicated a slight upside to the consensus estimate of 29 cents on revenue of $650 million but within the company's earnings guidance range of 28 cents to 30 cents on revenue of $630 million to $660 million.
Going forward, Munster believes the company is entering a strong product year with Macromedia's Studio 8 and the planned launch of Adobe/Macromedia product bundles and the release of Acrobat 8 expected in the fall. In addition, the analyst said that Adobe will likely begin shipping CS3 next spring.
The analyst said that distributors were mixed on Macromedia as an Adobe product.
"Half said that their Macromedia business is going better than expected, while the other half indicated that their Macromedia business is either what they would have expected, or below expectations," the analyst explained.
That said, the positives of Adobe's acquisition of Macromedia appear "long term in nature," while the negatives will likely be overcome in the near term as Adobe's representatives get a better hold on Macromedia, he added.
The analyst maintained a price target of $45 on Adobe shares. He is estimating 2006 and 2007 earnings per share of $1.27 and $1.45, respectively.
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