Software stocks have been under pressure for much of the year. Wall Street has worried that advancing AI models could replace key software functions, a trend some have called the “Saaspocalypse.”
But something has shifted in recent weeks. A broad rebound is underway across the sector, and BofA Securities analyst Tal Liani has responded by raising price targets on 10 software names.
Liani said the moves reflect “broad-based multiple expansion across software,” with no changes to underlying estimates or fundamental views.
He credited the rebound to strong earnings from select infrastructure software companies, easing AI disruption fears, and improved investor sentiment across large-cap and application software.
Here are the new price targets: ServiceNow raised to $150 from $130, Figma to $33 from $30, Workday to $205 from $140, Adobe to $220 from $190, Amplitude to $14 from $12, GitLab to $45 from $38, Snowflake to $395 from $330, Box to $39 from $37, Zeta Global to $34 from $29, and Asana to $10.75 from $9.
Each of the 10 stocks has risen at least 41% from its 52-week closing low. Adobe has climbed 41% since hitting $193.41 on June 25. ServiceNow is up 52% from its April low of $83. Figma has gained 59% from its June low of $16.84.
Liani reiterated Buy ratings on ServiceNow and Figma within large-cap software. He cited their stronger growth profiles and what he described as emerging AI monetization opportunities.
In infrastructure software, Snowflake kept its Buy rating. Liani pointed to its continued strong growth and AI monetization potential. GitLab and Amplitude remained Neutral.
Across application software, Box, Asana, and Zeta Global all held Buy ratings. Liani described their growth profiles as durable, with early-stage AI monetization opportunities developing.
Workday was kept at Neutral and Adobe at Underperform. For both stocks, Liani said recent price gains have outpaced any real evidence of a fundamental growth improvement.
Adobe is a standout on the downside. The stock has dropped 23% this year, and Liani sees the risk continuing.
He said AI makes content creation easier and is bringing in lower-cost, AI-native competitors. He also noted that AI-first annual recurring revenue remains below 2% of Adobe’s total ARR and has not yet driven visible growth.
ServiceNow shares are also down 17% for the year, though the company’s AI monetization story has earned it more confidence from BofA.
Software earnings season is approaching. Wall Street will be watching closely to see whether these companies can show real demand and real revenue from their own AI products.
The results will go a long way in deciding whether this software rebound has staying power.
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