CNET también está disponible en español.

Ir a español

Don't show this again

Avatar creators depart Netflix show BMW is making an M3 wagon Surface Duo phone Netflix will stream Broadway musical Diana Stimulus package status Surface Duo design

Adobe Systems slides on BofA downgrade

Adobe Systems shares fell $6.13, or 8 percent, to $69.75 Monday after Banc of America Securities cut the software developer from a "buy" rating to a "market perform."

Banc of America Securities analyst Greg Vogel said he downgraded the stock because of its lofty valuation and increased risk near-term.

"Adobe has exceeded our prior price target of $73 and is now trading at 57x our 2001 EPS forecast of $1.33," he wrote in a research note. "Adobe is up 126 percent year-to-date on what have been strengthening fundamentals, however we believe performance -- both margin expansion and revenue growth acceleration -- has leveled off. "

Adobe (Nasdaq: ADBE) shares were trading at a price-to-earnings ratio of 63.76 following Monday's sell-off.

In its latest quarter, Adobe hurdled analysts' estimates, earning $78.3 million, or 61 cents a share, on sales of $328.9 million.

First Call Corp. consensus expects it to earn 29 cents a share in the fourth quarter and $1.31 a share in fiscal 2001.

The stock moved up to a 52-week high of $87.31 earlier this month after falling to a low of $26.69 in February.

Fourteen of the 16 analysts tracking the stock rate it either a "buy" or "strong buy."