After UBS analyst Heather Bellini repeated her Buy rating on the shares and lifted her target price and EPS estimates, Adobe shares jumped 35 percent since its March 4 guidance reset, and is up 7.6 percent today.

Bellini lifted her EPS estimate for the November 2009 fiscal year to $1.48 from $1.44, which puts her closer to the Street consensus of $1.49.

“A stabilization in end demand and steadfast focus on costs suggest there could still be upside to 2009 EPS even assuming a continued challenging macro,” Bellini said.

“While still early in the quarter, our initial checks suggest management’s commentary that its channel business is stabilizing seems to be holding.” Bellini added.

For FY 2010, Bellini goes to $1.68, from $1.65, above the Street at $1.64. Bellini’s price target on the stock moves up to $25, from $21.