Mizuho analyst Gregg Moskowitz downgraded Adobe Inc (NASDAQ: ADBE) to Neutral from Buy, and cut his Q4, FY23 estimates with a price target of $440, down from $480, ahead of the company's fiscal third-quarter results.
Channel checks this quarter indicated a more complex environment than expected, even allowing for a challenging macro.
While Moskowitz believes ADBE guided conservatively enough for 3Q, he wouldn't be surprised by a guide down for 4Q.
The analyst also believes that Street revenue and EPS estimates for FY23 look too high.
In Moskowitz's view, ADBE remains well-positioned to benefit from digital transformation with its highly comprehensive end-to-end offering.
However, he also believes the shares could be range-bound over the near- to medium-term.
Earlier analysts acknowledged Adobe's significant execution risks as it cut its full-year guidance.
Price Action: ADBE shares traded lower by 0.41% at $393.19 on the last check Monday.
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