UBS Warburg Downgrades Adobe to 'Buy'

Analyst Ben Reitzes says he downgraded mainly due to risks associated with the weaker than anticipated international market

UBS Warburg downgraded Adobe Systems (ADBE ) to buy from strong buy.

Analyst Ben Reitzes says he downgraded mainly due to risks associated with the weaker than anticipated international market. To factor in a weaker advertising market impacting creative professions that use Adobe's products, and to a lesser extent, continuing weakness in consumer and IT spending, Reitzes cut his $1.02 fiscal 2002 (Nov.) earnings per share estimate to $0.91.

Also, he cut his $1.20 fiscal 2003 estimate to $1.08, and trimmed the $43 target to $28. Despite revisions, Reitzes says "buy" Adobe, on the belief the company's shares can rally into a launch of a potential new version of Acrobat in the spring of 2003.

Bank of America remains cautious on Cisco (CSCO ).

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