Overview
Piper Sandler released its latest thematic stock selection covering three software subsectors—Security & Infrastructure Software, Digital Infrastructure & Connectivity Software, and Enterprise Software platforms and applications. The note outlines the firm’s preferred equities based on recent performance trends, valuation multiples and fundamental outlooks.
Security & Infrastructure Software
The brokerage notes that security‑related software names have delivered strong momentum, with the average stock in the group gaining roughly 50 % over the past three months. It recommends MongoDB (NASDAQ:MDB), Atlassian (NASDAQ:TEAM), Varonis Systems (NASDAQ:VRNS), Snowflake (NYSE:SNOW) and Palo Alto Networks (NASDAQ:PANW) as the top ideas, arguing that companies that can sustain this price appreciation with solid fundamentals are likely to continue outperforming. The commentary references evolving demand dynamics “post‑Mythos” as a catalyst.
Digital Infrastructure & Connectivity Software
For the digital infrastructure segment, Piper Sandler observes a June shift back toward pure‑software offerings and away from hardware, while noting that valuation multiples have settled near pre‑Cloud‑era levels as growth and net‑revenue‑retention remain resilient. The firm’s top picks are Axon Enterprise (NASDAQ:AXON), Pinterest (NYSE:PINS), Rubrik (NYSE:RBRK), Arista Networks (NYSE:ANET) and Motorola Solutions (NASDAQ:MSI). Analyst‑day presentations in June reinforced a positive bias toward Cloudflare (NYSE:NET) and Rubrik.
Enterprise Software – Platform & Applications
The note points out that the broader enterprise‑software market underperformed in June, with application‑software indices down 6.7 % and vertical‑software indices down 2.3 %. Despite the weakness, Piper Sandler highlights Titan Machinery (NASDAQ:TTAN), Microsoft (NASDAQ:MSFT), Oracle (NYSE:ORCL), Global‑e Online (NASDAQ:GLBE) and Freshworks (NASDAQ:FRSH) as its preferred holdings in this space, emphasizing exposure to hyperscalers, consumption‑based models and niche vertical solutions.
Recent Market Movements
A contemporaneous market snapshot shows varied price changes for the highlighted stocks: ANET rose 8.31 %, VRNS gained 6.67 %, RBRK increased 4.45 %, while MSFT slipped 0.96 % and FRSH fell 1.64 %. Other listed moves include ORCL +2.51 %, AXON +4.24 %, PANW +2.73 %, TEAM +1.97 %, MDB +0.85 %, PINS +0.82 %, NET +2.19 %, SNOW +0.75 %, GLBE +1.25 %, and FRSH –1.64 %.
Publication Note
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