Key Takeaways
- Bank of America increased price targets across 10 software companies as concerns about AI disruption diminish and market sentiment strengthens
- ServiceNow’s target climbed to $150, Snowflake’s to $395, while Figma’s rose to $33
- Tal Liani, BofA analyst, maintained Buy recommendations for ServiceNow, Figma, Snowflake, Box, Asana, and Zeta
- Adobe remains rated Underperform due to mounting AI-driven competitive pressures on its legacy business
- Every stock on the list has surged a minimum of 41% from its lowest closing price in the past year
The software industry has faced significant headwinds throughout 2025. Investors have grown increasingly anxious that emerging artificial intelligence capabilities might supplant traditional software solutions, with some observers dubbing this phenomenon the “Saaspocalypse.”
However, recent market dynamics suggest a turning point. The sector is experiencing a widespread recovery, prompting BofA Securities analyst Tal Liani to increase price objectives for 10 software companies.
According to Liani, these adjustments demonstrate “broad-based multiple expansion across software,” while fundamental forecasts and core investment theses remain unchanged.
The analyst attributed this market reversal to solid quarterly results from certain infrastructure software providers, diminishing anxiety over AI-related disruption, and enhanced investor confidence in both large-capitalization and application software segments.
The updated price targets are as follows: ServiceNow increased to $150 from $130, Figma elevated to $33 from $30, Workday jumped to $205 from $140, Adobe rose to $220 from $190, Amplitude moved to $14 from $12, GitLab climbed to $45 from $38, Snowflake advanced to $395 from $330, Box lifted to $39 from $37, Zeta Global raised to $34 from $29, and Asana adjusted to $10.75 from $9.
All 10 companies have posted gains of at least 41% from their respective 52-week lows. Adobe has rallied 41% after bottoming at $193.41 on June 25. ServiceNow has surged 52% from its April trough of $83. Figma has jumped 59% since touching $16.84 in June.
BofA’s Top Investment Picks
Liani reaffirmed Buy recommendations on ServiceNow and Figma within the large-cap software universe. The analyst highlighted their superior growth trajectories and what he characterized as developing opportunities to monetize artificial intelligence.
Within infrastructure software, Snowflake retained its Buy designation. Liani emphasized its robust expansion and potential for generating AI-related revenue. GitLab and Amplitude both stayed at Neutral.
Among application software names, Box, Asana, and Zeta Global all maintained Buy ratings. Liani characterized their growth outlooks as sustainable, with nascent AI monetization prospects taking shape.
Workday remained at Neutral while Adobe held at Underperform. Regarding both companies, Liani indicated that recent stock appreciation has exceeded tangible evidence of fundamental business acceleration.
Adobe Confronts Mounting Challenges
Adobe represents a notable exception in this positive narrative. The stock has declined 23% year-to-date, and Liani anticipates continued pressure.
The analyst explained that AI technology is democratizing content creation while enabling lower-cost, AI-native rivals to emerge. He further observed that AI-focused annual recurring revenue represents less than 2% of Adobe’s total ARR and hasn’t yet produced measurable growth acceleration.
ServiceNow shares have also fallen 17% this year, though the company’s AI revenue generation narrative has garnered greater optimism from Bank of America.
The upcoming software earnings season looms large. Investors will scrutinize whether these companies can demonstrate genuine customer demand and tangible revenue generation from their proprietary AI offerings.
These financial reports will prove crucial in determining whether the current software sector recovery can maintain its momentum.
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