UPDATE: Bank of America Downgrades Adobe Systems to Neutral Following Share Price Appreciation

Bank of America downgraded Adobe Systems

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.