Morgan Stanley Maintains Equal-Weight on Adobe Systems

Morgan Stanley is out with its report today on Adobe Systems ADBE, maintaining Equal-weight. In a note to clients, Morgan Stanley writes, "We anticipate solid Q2 results aided by constructive CS5.5 demand, 5 points of YoY currency benefit and a lower impact from Japan than initially anticipated in the May guide. Data from our recent survey of 380 creative pros suggests a strong CS5.5 cycle with 60% of firms planning on upgrading in the near-term and we calc. $80-300M of likely rev. upside for CS over the next 4 qtrs. We remain bullish on the long term prospects for ADBE and are encouraged about areas like CEM, but we'd like to see more scale in the high growth businesses and new models before getting more positive on the name." Shares of ADBE closed Thursday at $32.22, down 0.08% from Wednesday's close.