UPDATE: Stifel Nicolaus Lowers PT to $37 on Adobe Systems Post In-Line Q3

Stifel Nicolaus reiterated its Buy rating on Adobe Systems

but reduced its price target from $38 to $37. Stifel Nicolaus commented, "Since launching a subscription option in May with Creative Cloud and Creative Suite 6.0 ("CS6"), Adobe's professional customers have moved faster than expected to adopt the new pricing model. … However, as a result Creative revenue is now expected to be lower in FY13 and we are again adjusting our model down. … 4Q guidance of $1,075-$1,125 (vs consensus $1,205) reflects a ~$94mn headwind from higher subscriptions, which also pressures Non-GAAP EPS to $0.56-$0.61 vs our previous $0.65 (consensus $0.67)." Adobe Systems closed at $33.12 on Wednesday.