UPDATE: Barclays Downgrades Adobe (ADBE) to Equalweight

(Updated - September 16, 2022 6:02 AM EDT)

Barclays analyst Saket Kalia downgraded Adobe (NASDAQ: ADBE) from Overweight to Equalweight with a price target of $340.00 (from $440.00).

The analyst comments "Following the announcement of Figma’s (private company; not covered) acquisition, we are downgrading Adobe to Equal Weight from Overweight for three reasons: (1) back-of-the- envelope, we could see FY23 EPS of $14+ and FY24 EPS of $16.50+ which may push out our ex-deal EPS estimates by a year, primarily because of the $20B purchase price, half of which is being funded with stock; (2) organically, remember that we previewed FY23 net new ARR might have a tough compare from pricing this year so we lowered to $1.7B last week - that combined with potential macro conservatism could make the 10/18 FA day a catalyst for numbers going down; (3) all this said, we could see ADBE under-promise and over-deliver on the EPS dilution - but given the size of the deal and impact on EPS growth, we think this performs more in-line with our coverage rather than out-performing in FY23."

For an analyst ratings summary and ratings history on Adobe click here. For more ratings news on Adobe click here.

Shares of Adobe closed at $309.13 yesterday.

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