Jefferies downgrades software stocks amid AI disruption fears
Jefferies downgrades rating on Workday WDAY.O, DocuSign DOCU.O, Monday.com MNDY.O and Freshworks FRSH.O to "hold" from "buy", says application software sector remains under pressure
Shares of WDAY, DOCU, MNDY, FRSH down between 2 and 3% premarket
Brokerage also cuts PT on Salesforce CRM.N, Adobe ADBE.O, GoDaddy GDDY.N, Wix.com WIX.O and Asana ASAN.N
As of last close, the S&P 500 software and services index .SPLRCIS is down 20.5% in 2026
Software stocks have been on a selloff spree on possible disruption from AI, broadly triggered by a new legal tool from Anthropic's Claude large language model
However, Jefferies prefers Intuit INTU.O, Procore technologies PCOR.N, Atlassian TEAM.O, Salesforce CRM.N based on "more durable models and internal AI adoption that underpins growth confidence"
Following are the PT revisions on stocks:
Company Name | Previous PT | Current PT |
Workday | $325 | $150 |
DocuSign | $105 | $45 |
Monday.com | $260 | $80 |
Freshworks | $20 | $8 |
Salesforce | $375 | $250 |
Adobe | $400 | $290 |
GoDaddy | $140 | $100 |
Wix.com | $200 | $130 |
Asana | $15 | $8 |
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