- Impact
- 5
Microsoft's decision to remove free PDF creation functionality from Office 2007 could be good news for Adobe Systems, according to Piper Jaffray.
The research firm maintained an "outperform" rating and $45 price target on Adobe shares after press reports said Microsoft (nasdaq: MSFT - news - people ) will not include free PDF creation in its next version of Office, which is due out in the first part of calendar 2007.
"This would have a positive impact on 1% to 2% of Adobe's business, which is the low end Acrobat business," wrote analyst Gene Munster in a research note Friday.
Abode's PDF creation program, Acrobat, represents about 20% of the company's revenue, and the low-end Acrobat business, which would be directly impacted by Microsoft giving away its own PDF tool, is about 1% to 2% of overall Adobe business, according to Munster's estimates.
Microsoft could still offer a free PDF creation tool, possibly through a free downloadable plug-in, according to the analyst.
"The reason why Microsoft may remove PDF creation from Office 2007 is unclear," Munster added. "Our best guess is Microsoft is trying to avoid another RealNetworks situation in which Microsoft was ordered to unbundle its media player in European versions of Office."
The research firm maintained an "outperform" rating and $45 price target on Adobe shares after press reports said Microsoft (nasdaq: MSFT - news - people ) will not include free PDF creation in its next version of Office, which is due out in the first part of calendar 2007.
"This would have a positive impact on 1% to 2% of Adobe's business, which is the low end Acrobat business," wrote analyst Gene Munster in a research note Friday.
Abode's PDF creation program, Acrobat, represents about 20% of the company's revenue, and the low-end Acrobat business, which would be directly impacted by Microsoft giving away its own PDF tool, is about 1% to 2% of overall Adobe business, according to Munster's estimates.
Microsoft could still offer a free PDF creation tool, possibly through a free downloadable plug-in, according to the analyst.
"The reason why Microsoft may remove PDF creation from Office 2007 is unclear," Munster added. "Our best guess is Microsoft is trying to avoid another RealNetworks situation in which Microsoft was ordered to unbundle its media player in European versions of Office."
