Morgan Stanley Maintains Equal-Weight Rating On ADBE

Morgan Stanley is maintaining its Equal-Weight rating on Adobe Systems

following the company's release of Q2 results. According to Morgan Stanley, “Q2 was a mixed bag as strength in Japan and CS 5.5 were offset by weakness in Europe and Enterprise. Total rev. of $1,023M and EPS of $0.55 topped us at $995M/$0.51 and cons. of $996M/$0.51 while Q3 guidance of $1.00-1.05B / $0.50-0.56 was in line. However, Q2 upside was somewhat expected as Japan improved, while areas of weakness may raise concerns--particularly Europe--and FY numbers will not move meaningfully higher in our view. Q2 was higher quality than Q1, and is a step forward against low expects, but both bears & bulls have cases to make on these numbers and we'd like to see more consistency to get more positive.” ADBE closed yesterday at $32.01.