Adobe: Cowen Downgrades on Product Transition Worries

Adobe (ADBE) shares are losing ground today after Cowen’s Walter Pritchard cut his rating on the stock to Neutral from Outperform.

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.” He notes that in the case of CS3, there were 24 months between versions, rather than the usual 18. The current version, he adds, benefited from additional demand associated with Apple’s (AAPL) adoption of Intel processors for the Mac.

Read the rest of this post


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »