Citigroup (NYSE: C) Raises Price Targets on Kraft Foods (NYSE: KFT) and Adobe (NASDAQ: ADBE)

Citigroup raise the price targets of packaged-food maker Kraft Foods Inc (NYSE: KFT) and Adobe (NASDAQ: ADBE), a software development company.

An analyst at Citigroup raised the company’s price target for Kraft Foods Inc to $36, up from $33 citing a strong probability for growth after its recent acquisition of Cadbury. Citigroup set its estimated earnings per share for 2010 and 2011 to $2.10 and $2.35 respectively. Citi re-iterated its buy rating on the stock.

Meanwhile, Citigroup has maintained its buy rating on Adobe Systems Inc (NASDAQ: ADBE) and raised its share price target to $42.00, up from $39.00 citing moves in the S&P and changes in the software industry.

Analyst Walter H Pritchard said, “Adobe is expected to report 1Q10 results March 23rd after market close. Channel inputs suggest inline results with Creative demand driven by late cycle adopters and still tepid demand for Acrobat. We don’t view the quarter as a key indicator for either the bull or bear case with CS5 on tap for April launch.”

Pritchard continued, “Backlog of nearly $70M (9% of revenue) is higher than at any point in the company’s history. While management always cautions that backlog is not necessarily a predictor of the following quarter’s revenue, our analysis of historical backlog shows that the company has never missed consensus revenue in the 11 quarters where backlog exceeded 5% of revenue.”

For 2010, Citigroup expects Adobe Systems to report a 2010 earnings per share of $1.84, compared to the consensus estimate of $1.79