FBR Capital Markets lowered its earnings and revenue estimates of Adobe Systems, Inc. (NASDAQ:ADBE), citing challenges in the transition and end-market demand.

The brokerage cut its fiscal 2012 earnings view to $2.50 per share from $2.60 per share and revenue forecast to $4.40 billion from $4.57 billion. Wall Street expects earnings of $2.54 per share on revenue of $4.53 billion, according to analysts polled by Thomson Reuters.

Adobe recently announced its shift in strategy and the changes to the business model along with 750 job cuts.

From a strategy perspective, the company is shifting its resources away from its enterprise business, and it will now concentrate on two main areas: digital media and digital marketing.  

In terms of the model, the company has decided to bite the bullet and undergo a complete transformation to a software-as-a-service (SaaS) model. This transition will take years.

While it could result in a more attractive model in the future with more recurring revenue, getting from here to there has historically proven challenging for other software vendors and for the investors that went along for the journey, analyst David Hilal wrote in a note to clients.

Finally, aside from the transition, Hilal said he remains cautious about end-market demand as he believes Creative Suite's relevance is diminishing, and, therefore, this franchise won't be able to drive Adobe's business like it has in the past.

Hilal has an underperform rating and $24 price target on Adobe Stock, which ended Wednesday's regular trading session at $28.08.