Analyst Actions: Adobe Systems, Monster Worldwide, Sanderson Farms

From Standard & Poor's Equity Research

PACIFIC CREST RAISES ESTIMATES FOR ADOBE SYSTEMS

Pacific Crest analyst Chad Bartley says Adobe Systems (ADBE) $890.4 million first quarter revenue and $0.48 pro forma EPS compare to consensus estimates of $875 million and $0.45, respectively.

Bartley says every revenue segment exceeded his forecasts and contributed to upside. He notes that a lower tax rate and lower share count contributed $0.02 of EPS upside. He says CS3 growth accelerated for the third straight quarter and Acrobat revenue was solid despite expectation of new version launching in mid-'08. He says management is upbeat and optimistic about company's outlook.

Based on solid momentum and product launches in the second half, he raises $1.85 fiscal year 2008 (November) EPS estimate to $1.92, and $2.15 for fiscal year 2009 to $2.22. He has a 54 12-month target price. He rates the stock outperform.

JPMORGAN CUTS MONSTER WORLDWIDE TO NEUTRAL FROM OUTPERFORM

JPMorgan analyst Imran Khan says Monster Worldwide's (MNST) first quarter operating expense guidance is higher than expected. He says The Monster Employment Index confirms trends that U.S. online recruitment has slowed more than expected, falling 6.8% year-over-year in February, after falling 4.8% in January.

Also, Khan believes the company's large auction rate security exposure and ChinaHR acquisition will leave it with little cash for share buybacks; it's likely the company will need to suspend its share buyback plan and turn to its loan facility to fund acquisitions.

He cuts $1.59 2008 EPS estimate to $1.20 and $2.10 for 2009 to $1.49.

JPMORGAN UPGRADES SANDERSON FARMS TO OVERWEIGHT FROM NEUTRAL

JPMorgan analyst Pablo Zuanic says there's increasing evidence that chicken economics will continue to improve. He notes by being the most leveraged company to cycle among listed chicken stocks, Sanderson Farms (SAFM) should directly benefit.

Zuanic says the chicken industry has proven it can pass on higher feed costs by adjusting supplies (it also benefits from trade down from other proteins to chicken). He is also starting to see signs of easing supplies. He says seasonality should also help pricing.

In such a context, he expects SAFM to generate above mid-point of cycle EPS, or about $5, which at 9-10 times (historical average is 10.5 times) would imply upside from Tuesday's $37.15 close. He raises $1.28 2008 EPS estimate to $1.98, and sees $5.05 2009 EPS.