NEW YORK (AP) ¿ Shares of Adobe Systems Inc. should have more room to climb following recently announced job cuts, a Jefferies & Co. analyst said Wednesday.
Adobe, best known for its Photoshop, Flash and Acrobat graphics and publishing software, said late Tuesday it will cut 680 full-time positions to align costs with its fiscal 2010 budget. The cuts represent about 9 percent of its work force.
Jefferies analyst Ross MacMillan estimates the savings will add about 15 cents to 20 cents to Adobe's full-year adjusted earnings per share. He bumped his price target for the company's stock up to $40 from $37.
Though he called the jobs announcement a surprise, MacMillan said he expects additional cuts at Omniture Inc., a software company headquartered in San Jose, Calif., that Adobe bought in October. Adobe, also based in San Jose, has already cut about 108 jobs at Omniture, or 9 percent of Omniture's work force.The latest cuts will happen at its own operations, Adobe said. The cuts come almost a year after Adobe slashed 600 jobs, or 8 percent of its workers, because of slowing sales. Technology companies continue to shed jobs despite a recovering economy. This week, Sprint Nextel Corp. said it will eliminate 2,000 to 2,500 positions, while video game maker Electronic Arts Inc. said it is cutting 1,500 jobs.