Guggenheim analyst John DiFucci argued that fears of AI rendering software stocks obsolete are a hallucination, calling the sector one of the best opportunities for patient investors. He upgraded Check Point Software, Salesforce, and ServiceNow, sending their shares up 2.9%, 4.2%, and 6.6% respectively. DiFucci noted that valuations imply many software companies will decline into perpetuity because of AI, a view he rejects, citing significant staying power in enterprise software. Check Point trades at 12.6 times forward earnings and Salesforce at 11.5, well below the Nasdaq Composite's average of 23.2, while ServiceNow's 23.7 forward price-to-earnings ratio is a fraction of its 62.1 a year ago. Guggenheim set price targets of $188 for Check Point and $228 for Salesforce, implying roughly 40% upside, and $128 for ServiceNow, implying 21% upside.
Salesforce.com IncGuggenheim upgraded Salesforce and set a $228 price target, implying ~40% upside.
ServiceNow IncGuggenheim upgraded ServiceNow and set a $128 price target, implying ~21% upside.
