Shares of Photoshop owner Adobe Systems Inc. were falling 1% in premarket trading Monday after Mizuho analyst Gregg Moskowitz downgraded the software stock to neutral from buy and cut his price target to $440 from $480, writing of his caution heading into the company's Sept. 15 earnings report. "Our checks this quarter were indicative of a more difficult environment than expected, even allowing for a challenging macro," Moskowitz wrote. "While we believe ADBE guided conservatively enough for F3Q, we wouldn't be surprised by a guide down for F4Q." He noted that his recent conversations with people in the industry indicated that sales cycles could be stretching out. While he likes the long-term potential of Adobe's offerings given the opportunity ahead in digital transformation, he worries that the shares could tread water in the more immediate term. Adobe shares have declined 30% so far this year as the S&P 500 has declined 15%.
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