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FBR Capital Maintains an 'Underperform' on Adobe (ADBE); Mixed Quarter, Revenue Upside Driven Primarily by Lesser Disruption in Japan

June 22, 2011 7:16 AM EDT
Get Alerts ADBE Hot Sheet
Price: $504.60 +0.04%

Rating Summary:
    35 Buy, 17 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 0
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FBR Capital maintains an 'Underperform' on Adobe (NASDAQ: ADBE), PT $28.

FBR analyst says, "We maintain our Underperform rating as we continue to believe: (1) CS is losing its ability to drive Adobe’s business, and we do not see much to materially offset this; and (2) the company’s model is stuck, and its efforts to drive more recurring revenue will be difficult. Our $28 price target represents 11x our FY12 (CY12) pro forma EPS estimate, which is in line with the company’s growth rate."

"We are tweaking our estimates. Our new FY11 revenue and pro forma EPS estimates are $4.16 billion and $2.28 versus our prior estimates of $4.13 billion and $2.24. The bulk of this adjustment is due to F2Q’s upside and a lower share count. For FY12, we are maintaining our revenue estimate of $4.60 billion and lowering our pro forma EPS estimate from $2.63 to $2.61."

For more ratings news on Adobe click here and for the rating history of Adobe click here.

Shares of Adobe closed at $32.01 yesterday.


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