Analysts said that the acquisition of Microsoft and Salesforce stocks, skipping Oracle and Citrix

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UBS (UBS) analyst Karl Keirstead raised his focus on enterprise software stocks on Wednesday and rated 10 companies, including most of the largest companies in the industry.

He prefers cloud computing, and the constant warnings to traditional companies are still focused on selling what he calls local applications.

“We are firmly focused on the historical income [and free cash flow] He said: “This is the golden age of software.” He wrote, summarizing his position in the field. He wrote in a report.

“As Covid and the economic crisis changed the mindset of large enterprises and initiated a multi-year technology investment cycle, the enterprise software sector, especially cloud-centric companies, is facing a decennial demand catalyst,” he said. “Although we are satisfied that software and cloud-centric spending should grow well, the slowdown in overall IT budget growth may reduce sentiment in the technology industry.”

The analyst said that it would like to “go against the grain, be unpopular with cheap internal infrastructure software inventory, and be cautious about expensive high-growth cloud names,” but he said this would be in line with his field investigation Contradiction, “In short, they are still professional cloud computing and still need to be cautious locally.”

He sets the “buy” rating to

Microsoft

(MSFT),

Salesforce.com

(CRM),

Current service

(Now) and

DocuSign

(DOCU).His rating is neutral

VMware

(VMW),

Oracle

(ORCL) and

Citrix System

(CTXS).And he also set a “sell” rating

Veeva system

(VEEV) and

Splunk

(SPLK).

Here is a summary of his views on all 10 stocks and their performance on Wednesday:

• Microsoft: He believes that “as companies advance plans to accelerate cloud infrastructure adoption, Azure revenue is expected to grow in 2021 and 2022.” Microsoft closed down 0.9% on Wednesday.

• Salesforce: “The Covid crisis has initiated a substantial investment cycle to modernize customer engagement and support, [and] Salesforce is in the middle of this trend. “Salesforce fell 1.9%.

• ServiceNow: “Our customer and partner inspections are better than expected. The spending growth prospects of existing customers are very impressive, and feedback from partners is also strong.” ServiceNow fell 0.3%.

• DocuSign: “Although the 60% increase in bills may not be sustainable, our feedback on the durability of contactless contract execution is strong enough that we think there is room for an upside in Street’s valuation in 2021.” Docusign fell 0.5%.

• Workday: “Although some investors believe that the demand for Workday’s core financial software products is starting to increase, our check feedback… is still somewhat different.” The workday fell by 1%.

• VMware: “In order for the stock to function normally, VMware’s internal IT infrastructure spending must be restored in the important quarter of January 2021. We have not heard any hints from the on-site inspection.” VMware shares rose 0.4%.

• Oracle: “Oracle is working hard to promote its cloud infrastructure and autonomous database”, but about 2% of Oracle’s total revenue is too small to move, we still haven’t heard of it [Oracle Cloud] Interest of large companies. Oracle’s stock price closed basically flat on Wednesday.

• Citrix: “Our inspections are usually ignored [CIO] Citrix’s spending outlook makes us disappointed by the strong growth of WFH (Work from Home) in the latest quarter. Citrix shares fell 2.2%

• Veeva: He wrote: “It confirms Veeva’s view that the demand for cloud software solutions in the pharmaceutical/biotech customer market is still strong”, but he added that he feels “tough” for the current valuation of the stock. Veeva fell 2.6%.

• Splunk: “This time our checks are down compared to previous rounds, and it feels that the growth is close to 5-20%, not close to 40% ARR [annual recurring revenue] Increase Splunk references. The feedback we heard does not seem to match stock trading at 13 times revenue in the 2021 calendar year. “Splunk shares fell 1.3%.

Write to Eric J.Savitz, email: [email protected]