Guggenheim Securities announced upgrades to a Buy recommendation for three prominent software companies—Salesforce.com Inc., Check Point Software Technologies Ltd., and ServiceNow Inc. The brokerage set new price targets of $228 for Salesforce, $188 for Check Point, and $125 for ServiceNow, reflecting what it views as undervalued valuations amid broader market concerns about artificial intelligence.
The firm argued that investor anxieties over an AI‑driven “SaaSpocalypse” have pushed software stock multiples to overly pessimistic levels, despite limited evidence of severe business disruption. It highlighted that Salesforce’s shares have fallen roughly 41% year‑to‑date, creating what Guggenheim describes as an attractive entry point, while acknowledging that agentic AI poses long‑term growth risks that are already priced into the stock.
For Check Point, Guggenheim noted a significant discount to peer valuations despite the company’s strong recurring‑revenue and cash‑flow profile, justifying the upgrade. ServiceNow was similarly upgraded, with the broker emphasizing the company’s positioning for double‑digit growth even though the monetisation of AI remains uncertain.
Guggenheim expects subscription‑revenue growth across the software sector to stabilise in 2026 and potentially re‑accelerate in late 2026 and 2027, which it believes will support higher valuation multiples than are currently reflected in share prices. The brokerage further outlined that AI will reshape the software industry, benefitting segments such as cloud infrastructure, security and data intelligence, while creating pressure on areas including DevOps, workplace collaboration and horizontal applications.
Market reaction at the time of the report showed modest gains: Check Point shares rose 2.18%, Salesforce advanced 4.25%, and ServiceNow climbed 6.54%.