Wells Fargo on Monday became the latest firm to downgrade Adobe after its recent acquisition of Figma.
Analyst Michael Turrin downgraded the stock to equal weight from overweight, saying investors should sit on the sidelines as Adobe's $20 billion purchase of Figma raises questions.
Adobe shares plunged 24% last week after the software company announced the acquisition.
"Following a string of disappointing earnings results, Adobe shocked the software world announcing its intent to acquire Figma for ~$20Bn (1/2 cash, 1/2 stock)," Turrin wrote.
The firm's new price target of $310, down from $425, represents just 3.5% upside for Adobe.
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