hapabapa/iStock Editorial via Getty Images
- Adobe (NASDAQ:ADBE) was downgraded by UBS analyst Karl Keirstead, who said marketing spend was pulled forward in 2020 and 2021 more than investors think, which could hurt the company's growth rate this year.
- Keirstead lowered his rating to neutral from buy and cut his price target to $575, down from $635, after speaking with 14 "large" enterprise IT executives and services partners of Adobe (ADBE) to discuss their spending outlook this year.
- Adobe (ADBE) shares fell nearly 2% to $554 on Tuesday, but have gained nearly 14% over the past year.
- Keirstead added that the mix of marketing technology is "shifting,"which could negatively impact Adobe's (ADBE) digital experience revenue more than expected.
- Last month, Adobe (ADBE) gave an earnings and revenue forecast for next year that fell short of analysts' estimates, leading to speculation about the digital publishing and marketing giants growth prospects.