Morgan Stanley Reiterates Equal-Weight on Adobe

Morgan Stanley maintains its Equal-weight rating on Adobe Systems (NASDAQ: ADBE) as company's guidance may be offset by EMEA softness.

Morgan Stanley says, “We are bullish on the LT benefits of the subscription model, and ADBE's ability to gain share in Digital Marketing. Near term, the Q4 guide is above seasonal and our checks point to some EMEA softness. While ADBE has levers to drive EPS, we'd like to see top line stability before buying the stock.”

ADBE closed at $27.39 per share on Monday.