AI narrative taking shape for US app software firms in 2025, Raymond James says
03/01/2025 12:47
** Raymond James says AI narrative is taking shape for U.S.
application software firms, but will not 'materially' change
earnings growth
** Brokerage says while AI has dominated tech narrative over
last 18-24 months, impact on app software firms has been more
questions than answers
** Notes narrative changed in 2024, with front-end software
vendors such as Salesforce CRM.N , HubSpot HUBS.N , ZoomInfo
ZI.O , Freshworks FRSH.O and Intapp INTA.O launching
monetizable GenAI products
** Brokerage upgrades WK to "outperform" from "market
perform", citing strong Q3 2024 bookings as driver for
subscription revenue growth
** Raymond downgrades INTA and VERX to "market perform"
from "outperform" and RNG to "outperform" from "strong buy",
citing valuation
** Shares of application software RingCentral RNG.N ,
Vertex VERX.O and Workiva WK.N down between 0.28% and 0.58%;
Intapp INTA.O up 0.84%
** Shares of INTA, RNG, VERX and WK rose 68.57%, 3.12%,
98.03% and 7.85%, respectively, in 2024
(Reporting by Akriti Shah in Bengaluru)
((akriti.shah@thomsonreuters.com))