Jul. 1 at 8:44 PM
Guggenheim Securities upgraded Salesforce, Check Point Software, and ServiceNow to Buy, arguing that AI-driven fears of a "SaaSpocalypse" have pushed software valuations to excessively pessimistic levels despite little evidence of widespread business disruption. The firm expects software subscription revenue growth to stabilize in 2026 and reaccelerate into late 2026 and 2027, supporting higher valuation multiples across the sector.
Guggenheim raised Salesforce to Buy with a
$228 price target after the stock's roughly 41% YTD decline, saying current valuations already reflect an overly bearish AI scenario. Check Point was upgraded to Buy with a
$188 target, citing its discounted valuation, resilient recurring revenue, and strong cash flow generation. ServiceNow was also upgraded to Buy with a
$125 target, as the firm expects it to maintain double-digit growth despite uncertainty around AI monetization.
$CRM $CHKP $NOW