Benzinga | Jan 5, 2022 08:17AM EST

UBS Downgrades Adobe To Neutral, Slashes Price Target By 9.4%

* UBS analyst Karl Keirstead downgraded Adobe Inc (NASDAQ:ADBE) to Neutral from Buy with a price target of $575, down from $635. The price target implies a 3.79% upside.

* UBS rerated on concerns that tech spending was pulled forward in 2020 and 2021 and that this phenomenon will pressure Adobe's growth rate in 2022.

* After speaking with 14 large enterprises, IT executives, and services partners of Adobe throughout December about their Adobe spending outlooks, Keirstead has concerns about a creative and marketing spending pull-forward and "martech" budgets shifting.

* Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing, and engaging with compelling content multiple operating systems, devices, and media.

* Price Action: ADBE shares traded higher by 0.25% at $555.39 in the premarket session on the last check Wednesday.