Citi Provides Color on Adobe Systems, Buy

Citi provided color on Adobe Systems

. In a research report published today, Citi stressed its belief that the macro outlook has deteriorated, but that Adobe is able to withstand this deterioration and to improve its results. In the report, Citi states, "While expectations have come up marginally, shares have come under pressure as the general macro outlook has worsened in recent weeks. We continue to see an upward bias to estimates and believe consistent results driven by the successful launch of CS5.5 coupled with continued execution in higher-growth areas (enterprise and Omniture) can help to move multiple back towards historical premium vs. the market (1.3-2x S&P). The low-end of this drives our $42 target." At the moment, Citi has a Buy rating and a price target of $42 placed on the company's stock. On Friday, Adobe closed at $31.67.