Adobe Systems (NASDAQ:ADBE) shares are getting a lift Wednesday from Kaufman Bros. analyst Barbara Coffey, who Wednesday morning lifted her rating on the stock to Buy from Hold, boosting her price target to $32, from $25. Tuesday, the stock closed at $28.30.
Coffey notes that Adobe shares tend to outperform heading into major product upgrades. She notes that a new version of Acrobat could be released in Q1 2010, with Creative Suite 5 expected in the second quarter of next year. She notes that buyer patterns have been shown stronger sales for the odd-numbered CS upgrades; CS 1 and 3 did better than versions 2 and 4. “We believe that shares of Adobe will likely outperform the market until the time of the releases,” with the stock performance after that more tied to the strength of demand, the state of the economy and the health of the advertising market, she writes in a research note.
ADBE Wednesday morning is $1.28, or 4.5%, to $29.58.