Focus of ten software titles – Milano Finanza

The long-term growth trend is still valid, but in recent weeks the titles of the software industry were affected by the global slowdown that hit all price lists. Here, according to Morgan Stanley analysts, the companies buy exploiting the weakness of the current prices.

1) Salesforce.com. Target price of $ 84, which implies an upside potential of 40% from current prices. In the optimistic scenario, the goal is $ 104 (+ 77%). The strengths are positioning in a rapidly growing market, the improved visibility of the results, the expected increase in profit margins and expansion of the customer base (it was announced a new logo).

2) ServiceNow. Positive Rating (overweight) with a price target $ 76 (+ 50%). bullish hypothesis can get to $ 130 (+ 160%). The company has recently completed the reorganization of the sales, while gaining market share. At current prices the stock is significantly undervalued relative to future potential.

3) Palo Alto Networks. The rating of the group is overweight, while the target price of $ 171 implies a margin a rise of 42%. In the optimistic scenario, the goal is $ 246 (+ 104%). According to analysts will continue to grow in a market evolving security. It ‘also able to differentiate intelligently by competitors.

4) Red Hat. Target price of $ 80 (+ 26%) with a rating of overweight (overweight). Bullish assuming the goal is $ 101 (+ 60%). It ‘an open source technology platform at low cost which will continue to create good results, thanks to the impact of investments made in recent years that will drive a slight expansion of profit margins and the increase in free cash flow.

5) Splunk. The target price is $ 53, which implies an upside space by 68% from recent listings, with ratings of overweight (overweight). In the optimistic scenario, the potential rises to 216% ($ 100). At recent prices the stock is undervalued, considering the sales growth potential and profitability improvement.

6) Proofpoint. The target price is $ 52 (+ 30%) with positive opinion (overweight). Assuming bullish salt instead to 85 (+ 115%). The email security systems are a mature business, but Proofpoint continues to gain market share and to invest in R & amp; D.

7) HubSpot. The target price of $ 47 allows for a margin of appreciation of 60%, which comes to 110% in the best-case scenario ($ 61). And ‘leader in marketing automation sector, which is highly fragmented and competitive, but where HubSpot manages to differentiate itself from the competition by focusing on smaller business and on “

8) Veeva Systems. positive Rating with a target price of $ 29, which implies a margin of 39%. In the optimistic scenario, the goal is instead $ 50 (+ 140%). It provides SaaS solutions for the pharmaceutical industry, where he built into a solid customer base. The operating margin is currently 27% but may exceed 30%.

9) Zendesk. favorable rating (overweight) with a price target $ 24 (+ 55%). bullish hypothesis can get to $ 30 (+ 90%). And ‘an emerging leader in customer services segment should benefit from the need of businesses to make investments in new technologies to better understand customers’ choices.

10) Apigee Corporation. the company’s credit rating is overweight, while the target price ($ 10) in the baseline scenario implies a potential upside of 80%. In the era of mobile app will benefit, according to analysts, the rise in productivity, advertising and the sale of new solutions such as predictive analytics.