Analyst Picks & Pans March 17, 2010, 11:26AM EST

Stock Picks: Adobe, BlackRock, Discover, Greenhill

Wall Street analyst opinions on stocks making headlines in Tuesday's market

Story Tools

Adobe Systems Inc.: Deutsche Bank equity analyst Tom Enrst Jr. maintained a buy rating on shares of Adobe Systems Inc. (ADBE) on Mar. 17.

In a note, Ernst said he expects the maker of the Flash video software to post "solid" first-quarter results on Mar. 23, ahead of the Wall Street consensus expectations of revenues of around $827 million and earnings per share (EPS) of 37 cents. Ernst said the improving macroeconomic environment, alongside a strong fourth-quarter deferral, more than offset depressed demand ahead of the product cycle for Creative Suite 5 -- the newest iteration of the company's flagship bundled offering -- which he expects to launch in the second or third quarter of 2010. Ernst estimates first-quarter revenues of $835 million and EPS of 39 cents.

While uncertainty around the company's October 2009 acquisition of Web analytics company Omniture has muted investor sentiment regarding Creative Suite 5, Ernst said he believes the launch of the product should help return Adobe shares "to more typical premium levels".

The analyst hiked a price target on the shares to $46 from $44.

BlackRock Inc.: Credit Suisse equity analyst Craig Siegenthaler raised an investment rating on shares of BlackRock Inc. (BLK) to outperform from neutral on Mar. 17.

In a note, Siegenthaler said recent underperformance in BlackRock shares, and their improved valuation relative to peers, "provides an entry point" on the stock. He said he believes BlackRock is "best-positioned" to benefit from three factors that could drive growth in assets under management: ETF products, the payout market (retirees in the U.S. and Western Europe); and international distribution.

"More importantly, we expect strong EPS and [fund] flows to drive stock price outperformance over the intermediate term, Siegenthaler wrote.

The analyst raised a 2011 EPS estimate to $13.50 from $13.30, vs. the $13.22 consensus estimate of Wall Street analysts. He also lifted a price target on the shares to $280 from $270.