Tom Reese/Paul Rubillo, Dividend.com
Former Tech high-flier Adobe Systems (ADBE) continues to struggle as shares are down nearly 7 percent today on a FBR research ratings change to an underperform from market perform.
The analyst is making a valuation call, saying that the stock has risen 16% after its December warning. The analyst believes Adobe has yet to face the economic downturn hitting many tech companies.
The Bottom Line
Just last month the company guided first quarter revenue to come in between $800-$850 million, with analysts’ estimates sitting at $842.4 million. Shares have been cut in half since hitting 52-week highs of $44 a share in May. If the stock does continue to weaken, the next major level of technical support is near the $13-15 level. If the shares can firm up and move higher, we see overhead resistance at the $27-30 levels.
Adobe Systems (ADBE) does not currently pay a dividend.
