“Cowen’s Walter Pritchard [today] cut his rating on [Adobe, ADBE] stock to Neutral from Outperform,” Eric Savitz reports for Barron’s.
“Pritchard is concerned about the company’s transition from the current version of its flagship software package – Creative Suite 3 – to the coming update, Creative Suite 4. He says that with the May quarter, ‘the company will reach a peak in financial momentum.’ But Pritchard contends that ‘many of the drivers of growth in CS3 are not in place and in some cases work against CS4 given the significant upgrade activity and price uplift that came with CS3,’” Savitz reports.
“He notes that in the case of CS3, there was 24 months between versions, rather than the usual 18. The current version, he adds, benefited from additional demand associated with Apple’s adoption of Intel processors for the Mac,” Savitz reports.
Full article here.
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