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

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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.