Piper Jaffray Raises Adobe Estimates
Piper Jaffray raised its estimates on Adobe Systems (ADBE ).
Analyst Gene Munster says the increase in guidance is related to greater-than-expected sales of Create Suite products and Acrobat this quarter. He continues to believe that a longer domestic Create Suite tail is carrying over into localized versions. Munster believes fundamental strength in the market will support continued strength in Create Suite products and result in multiple expansion for Adobe shares. He raised the 37 cents second-quarter earnings per share estimate to 44 cents, upped the $1.52 fiscal 2004 (Nov.) estimate to $1.62, raised the $1.58 fiscal 2005 estimate to $1.67, and upped the $1.63 fiscal 2006 estimate to $1.72. He also raised the $50 target to $55, and reiterates his outperform rating.