Zacks Investment Research downgraded shares of Adobe Systems (ADBE) from NEUTRAL to UNDERPERFORM on January 02, 2013, with a target price of $34.00.
Adobe's fourth quarter earnings exceeded the Zacks Consensus Estimate on higher revenue, particularly due to rapid adoption of the Creative Cloud and Adobe Marketing Cloud. We believe the solid adoption of Creative Cloud will act as a potential catalyst going forward. We remain optimistic about Adobe s market position, compelling product lines, continued innovation, acquisitions and its strong balance sheet. However, the subscription service will hurt Adobe's revenue growth in the short term as it brings in revenues on a monthly basis instead of an upfront payment. Hence, we are downgrading our recommendation on Adobe shares from Neutral to Underperform.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Adobe Systems (ADBE),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment