Adobe downgraded at J.P. Morgan due to limited upside ahead of earnings

Dec. 14, 2021 7:16 AM ETAdobe Inc. (ADBE)MSFTBy: Chris Ciaccia, SA News Editor9 Comments

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  • Adobe (NASDAQ:ADBE) is being downgraded at J.P. Morgan two days ahead of fourth-quarter earnings, as the investment bank says there is limited upside to its $680 price target.
  • Analyst Sterling Auty downgraded Adobe to neutral, despite Adobe (ADBE) being "one of the better performers" in the analyst's coverage area this year. Adobe shares have gained more than 35% year-to-date.
  • Adobe (ADBE) shares are down 2% to $645.13 on back of the news.
  • Auty adds that Adobe (ADBE) has benefited as companies have increased their spending on digital marketing and advertising and has benefited from an environment that "best suits subscription software models."
  • Adobe recently announced its intention to acquire ContentCal, a leading social media and content marketing solution.
  • Analysts believe San Jose, California-based Adobe (ADBE) will earn $3.20 per share on $4.09 billion in revenue this quarter. In its most recent quarter, it earned $3.11 per share on $3.94 billion in sales.
  • Morgan Stanley cited Adobe (ADBE), along with Microsoft (NASDAQ:MSFT) as a "core franchise stock" due to their fundamentals and reasonable multiples.

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