Shares of Adobe Systems Inc. /zigman2/quotes/200389143/composite ADBE +1.05% are off 3.6% in Wednesday trading after Citi Research analyst Walter Pritchard cut his rating on the stock to neutral from buy. He argues that consensus expectations for Adobe's digital experience revenue are too high given current trends and that the company will have to invest further in this area of the business, which potentially limits margin expansion. His analysis also indicates that excluding price increases, Adobe saw flat annual-recurring-revenue trends in its Creative Cloud business over the past two years. "We are downgrading Adobe from buy to neutral based on concerns about the ability to continue the financial momentum it has had over the last five-plus years," he wrote, while lowering his target price to $313 from $322. The stock is down 12% over the past three months, as the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.20% has shed 0.5%.
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