Internet » Software: Goldman Chops Estimates On Macro Weakness

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Goldman Sachs analyst Heather Bellini On Friday reduced estimates and price targets for most of the companies she covers, citing signing of slowing in the broad economy.

"As the market and our economists forecast a lower global growth trajectory and stock valuations are being similarly lowered, we look across our sector to evaluate exposure to a slowing economy," she writes in a research note. "We are lowering our estimates and price targets across our coverage universe (including our Buy-rated names) as we adopt a base-case scenario for growth that assumes below-trend seasonality, although not as much of a slowing as seen in 2008. On average, we are reducing our price targets by 17%."

Bellini writes that on average she cut estimates by 2% for the current fiscal year and 5% for the following year. "After the disruption of our universe’s very regular seasonal behavior during the financial crisis, our names have returned to normal seasonal patterns," she writes. "However, we believe current macro concerns create the potential for more disruption."

Bellini did not change ratings on any stocks. Here is a rundown on her price target reductions:

• Adobe: to $24, from $32 .
• Autodesk: to $31, from $44.
• Citrix: to $67, from $78.,
• Google: to $650, from $675.
• Microsoft: to $29, from $31.
• Oracle: to $33, from $40.
• Red Hat: to 43, from $51.
• Salesforce.com: to $160, from $185.
• Vmware: to $115, from $140.