Jefferies Maintains Buy Rating On Adobe After Earnings (ADBE)

Jefferies JEF released an update on Adobe Systems ADBE today after the company reported earnings yesterday. Jefferies is reiterating their Buy rating, despite the fact that the shares are getting hit hard today. ADBE reported earnings per share of $0.44 on revenue of $943 million, which was slightly ahead of consensus. Despite beating estimates, ADBE has fallen 5.68% on Wednesday to $30.90. Volume has been very heavy on the session, with nearly 20 million shares already changing hands compared to a daily average of 7.21 million. Jefferies has a $38 price target on ADBE shares, which is based on 17x their FY11 EPS estimates. According to the analysts, the key risks include the success of the CS5 cycle, integration of Omniture and long-term competitive and open standard threats to core assets.