Deutsche Bank Upgrades Adobe

Deutsche Bank (DB) upgraded Adobe Systems Inc. (ADBE) to a “buy” from “hold,” and boosted its price target by $3 to $52 on Tuesday, sending the shares up as much as 7%.

Despite a strong fourth quarter and healthy guidance, negative sentiment has created an “attractive entry point,” analyst Lou Taylor said in a note to clients.

He provided several reasons to own shares of the diversified software company in 2008. These include healthy expectations for its Creative Suite 3 products, more investor buying that could come before a product cycle in the second half of 2008 (Acrobat is expected in Q3), and the possibility that large cap software investors will see Adobe as a “safe alternative to companies with large enterprise spending exposure...”