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).