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Fly News Breaks for October 16, 2019
ADBE
Oct 16, 2019 | 06:15 EDT
Citi analyst Walter Pritchard downgraded Adobe to Neutral from Buy with a price target of $313, down from $322. The analyst believes the stock's risk/reward is "more balanced" with the company's fiscal 2020 guidance "likely to be less conservative." Consensus fiscal 2020 Digital Experience estimates are too high based on current trends, Pritchard tells investors in a research note. The analyst also thinks Adobe must continue to invest in Digital Experience, likely both organically and through acquisitions, "potentially keeping margins in check." Pritchard moves to the sidelines ahead of the company's analyst day on November 5 due to lower growth and margin visibility.