Global Equities Research Cutting Estimates On Adobe

Global Equities Research is cutting its estimates on Adobe ADBE, as it expects the company to miss estimates. It has a Neutral rating and a $31 price target on shares. In a note to clients, Global writes, "We are reducing our estimates, maintaining Equalweight rating and 12 – 18 months Price Target of $31 to reflect weakness in about 50% of Adobe's business, which includes poor start to Adobe's CS5.5, sequential drop of ~5% in projects for the creative professionals, and creative professionals preference for month-to-month subscription over the CS5.5 upgrades or CS5.5 yearly subscriptions. Our new estimates also reflect weakness in Flash as well as strength in Omniture Our 12 - 18 months Price target of $31 is based on a P/E multiple of 14.4x FY2011 estimates of $2.15 and on a P/E multiple of 14.6x FY2012 estimates of $2.12" Shares of ADBE gained 34 cents yesterday to close at $34.63, a gain of 0.99%.