Morgan Stanley Urges Buys on 9 Software Stocks Showing 20%-45% Discounts
Morgan Stanley recommended nine software stocks trading 20%-45% below 52-week highs due to an AI-driven selloff, highlighting value opportunities; Intuit was singled out after its Q4 cloud subscription revenue rose 22% year-over-year. The firm raised valuation targets by an average of 12% across the group.
1. Morgan Stanley Software Buy List
Morgan Stanley identified nine large-cap software companies whose shares have fallen 20%-45% from their 52-week highs as AI-related momentum faded, recommending buy ratings to capture valuation upside.
2. Intuit Selection Rationale
Intuit was included based on a 22% year-over-year increase in cloud subscription revenue in Q4 and early customer feedback on new AI-driven bookkeeping features.
3. Valuation and Price Target Adjustments
Analysts collectively increased price targets on the group by 12% on average, citing improved margin outlooks and normalized multiple expansion relative to peers.
4. AI Adoption as Catalysts
The inclusion hinges on upcoming AI product rollouts, expected to drive double-digit revenue growth and justify the current discounted valuations.