UBS maintains a 'Buy' on Adobe (ADBE); VAR Survey Weak; Cut Estimates & PT on Concerns

UBS maintains a 'Buy' on Adobe (NASDAQ: ADBE), price target lowered from $40 to $33.

UBS analyst says, Our proprietary global survey showed VARs beating FQ3 targets, but otherwise feeling slightly more negative about macro and ADBE product sales. As a result, we are cutting ests and resetting PT to assume a modest slowdown though not an outright recession. Stock overhangs persist,
including co’s role in Apple ecosystem and macro exposure (high correlation to GDP trends). In addition, head of Enterprise unit recently left to be CEO of a start-up. That said, valuation is nearing trough levels, and we expect value of its top quality software franchise to get recognized."

"...Cutting FY12 ests to/from/St: revenue $4,449M/4,759M/4,560M, growth 8.0%/14.1%/9.8%, EPS $2.35/2.55/2.56."

For more ratings news on Adobe click here and for the rating history of Adobe click here.

Shares of Adobe closed at $24.54 yesterday.

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