Shares of Adobe Inc (ADBE  ) were climbing in early trading on Wednesday, ahead of the release of the company's fiscal second-quarter results on Thursday.

Expectations for the company's upcoming quarterly results are "depressed," according to JPMorgan.

The Adobe Analyst: Mark Murphy maintained a Neutral rating and price target of $570 on the stock.

The Adobe Thesis: Investors remain cautious in view of Adobe's fiscal first-quarter performance as well as several application software companies reporting misses over the recent weeks, Murphy said in a note.

There are also concerns around "GenAI not flowing through in revenue at the application layer," while "potentially driving a pause in larger, transformational IT projects," the analyst stated. Adobe is also facing rising competition from GenAI native vendors, he added.

Following Adobe's disappointing NNARR (net new annual recurring revenue) performance in the previous quarter, the stock is down 20% year-to-date, versus a 13% gain by the S&P 500 in the same period, Murphy wrote. He further said that the company's shares are currently trading "well below our price target for the first time in a while."

ADBE Price Action: Shares of Adobe were up 1.6% to $470.22 at the time of publication on Wednesday.