NEW YORK (AP) ¿ Predicting an earnings recovery in the second half of next year and following an upbeat analyst meeting, a Robert W. Baird analyst upgraded Adobe Systems Inc. on Thursday.
Steven M. Ashley raised his rating to "Outperform" from "Neutral," and boosted his target price on Adobe's shares to $40 from $35. He expects the software maker's earnings to recover thanks to the release of Creative Suite 5 next year.
The Creative Suite software package brings in the bulk of Adobe's revenue. Aimed at professional designers and developers, it includes Photoshop, Flash and Web design software Dreamweaver, among other applications. The most recent version was launched last fall, in the midst of the economic turmoil that dampened demand for it. Analysts generally expect this pent-up demand to drive sales of Creative Suite 5 higher.
Ashley also expects Adobe's acquisition of Omniture Inc. to close as expected and provide a longtime benefit to the San Jose, Calif.-based company.Adobe shares rose 65 cents, or 2 percent, to $33.91 in premarket trading.