Adobe Shares Hit 52-Week High

An analyst likes prospects for its new Creative Suite offering.
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Shares of

Adobe

(ADBE) - Get Report

reached a 52-week high Tuesday after a sell-side analyst upgraded the stock, saying demand for the company's flagship products is likely to remain strong through a product transition.

In recent trading Tuesday, shares were up $1.19, or nearly 3%, to $42.50; the previous 52-week high was $41.97.

Wachovia analyst Phil Rueppel bumped the stock to outperform, saying "our checks indicate pent-up demand for CS3" -- the company's newest version of Creative Suite, which includes Photoshop and other graphic design applications.

In a note to clients, Rueppel said it appears that the Adobe will release CS3 on time, or even a bit earlier. He also noted that products from the former Macromedia (purchased by Adobe last year) will be integrated with CS3, "which in our view will lead to further upside potential and a longer tail."

Wachovia is seeking investment-banking business with Adobe.