On Tuesday, BMO downgraded Adobe (NASDAQ:ADBE) Stock to Market Perform from Outperform. Just a day before, Mizuho downgraded Adobe shares. This downgrading comes just two days before the company reports earnings. In premarket trading, shares of Adobe are down 3 per cent.

Analysis suggests that the downgrading call is not driven by earnings risk but rather by the results of the second set of survey data focused on Adobe’s Creative Cloud. It further said that the respondents across the board expressed a greater willingness to move away from Adobe Creative Cloud in August survey. Younger employees, in particular, expressed a higher probability of using competitors to Creative Cloud. As far as earnings are concerned, the analysis calls it a neutral event for shares.

In some areas, the company remains bullish, including Adobe’s potential with its CDP offering. It chose to move to the sidelines given uncertainty about the durability of growth for Creative Cloud, which generates about 60% of total revenues.

Notably, the price target goes to USD 435 from USD 420. It is the fifth downgrade for Adobe shares in 2022.