) to strong buy from outperform.
Analyst Gene Munster says he expects the next Photoshop upgrade -- to Photoshop 8.0 -- will ship within the next four months. He notes that historically, Photoshop upgrades have been catalysts for sales of Illustrator and InDesign products. He's quite certain Illustrator 11.0 will ship within the next three months.
Munster notes that over the last five Photoshop upgrades, solid returns have been achieved by buying ADBE shares two or three months ahead of shipment, then selling shares on or not long after shipment.
The analyst expects a solid third quarter. He raised his 29 cents fourth-quarter EPS estimate to 31 cents, and his 29 cents first-quarter EPS forecats to 30 cents.