Jefferies downgrades software stocks amid AI disruption fears

Docusign

23/02/2026 10:40

** 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

(Reporting by Kanishka Ajmera in Bengaluru)

((mail to: Kanishka.Ajmera@thomsonreuters.com))