Piper Jaffray Neutral On Adobe Systems (ADBE)

Piper Jaffray has a Neutral rating and a $36 price target on shares of Adobe Systems ADBE. In a note to investors, Piper Jaffray writes, "We believe estimates for Adobe's May quarter may prove conservative for two reasons: 1) Adobe cut $50m out of its May quarter guidance for Japan, but our analysis of comparable companies and their Asian business in the March quarter (and commentary around June quarter) suggests this is a deeper than necessary cut; 2) the Street is modeling for May quarter overall Adobe revenue to be down 3% q/q, but revenue has never declined sequentially in a CS launch quarter (CS 5.5 shipped on 5/3). In general, we expect CS 5.5 will be a mild catalyst in FY11." Shares of ADBE lost 53 cents on Friday to close at $35.33, a loss of 1.5%.