UPDATE: Bank of America Downgrades Adobe Systems to Neutral Following Share Price Appreciation
Bank of America downgraded Adobe Systems (NASDAQ: ADBE) from Buy to Neutral and lowered the price objective to $45.00.
Bank of America commented, "[A]fter ~60% appreciation in the stock (~2x the NASDAQ) since they announced the model transition in Nov '11, we are downgrading from Buy to a Neutral as we believe – 1) the stock is close to its fair value of $45 based on our SOTP analysis of its segments; and 2) there is lack of clarity on what the earnings power could be in 2014 and 2015 given wide range of potential margin outcomes."
Adobe Systems closed at $41.50 on Friday.
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