On Wednesday, Truist Securities provided insights into the AI enterprise software market, highlighting several companies poised to benefit from the ongoing investments in generative AI (GenAI). As the industry nears the two-year mark since the release of ChatGPT, analyst Joel P. Fishbein Jr. noted that although broad deployment of AI technologies might be delayed until the second half of 2025, he anticipates AI to improve business operations across various sectors.
Fishbein’s analysis is based on a recent survey of IT buyers, focusing on their budgeting and technical decision-making processes. This survey underpins Truist’s refreshed perspective on the enterprise software landscape. According to the findings, there are multiple avenues for success for firms operating at both the Application and Infrastructure Layers of the technology stack.
Among the companies that stand to gain from these developments, Truist has identified several with a ’Buy’ rating. These include Salesforce (NYSE:CRM), Five9 (NASDAQ:FIVN), HubSpot (NYSE:HUBS), Intapp (NASDAQ:INTA), Kyvos Insights (private), Manhattan Associates (NASDAQ:MANH), MongoDB (NASDAQ:MDB), Microsoft (NASDAQ:MSFT), nCino (NASDAQ:NCNO), OutSystems (private), Q2 Holdings (NYSE:QTWO), Roper Technologies (NYSE:NASDAQ:ROP), Snowflake (NYSE:SNOW), Atlassian (NASDAQ:TEAM), Titan Technology Corporation (private), Tyler Technologies (NYSE:TYL) - a $25 billion market cap company currently trading near its 52-week high with an 8% revenue growth and "GOOD" financial health score according to InvestingPro - and Zeta Global (NYSE:ZETA).
Additionally, ServiceNow (NYSE:NOW), which holds a ’Hold’ rating from Truist, was also mentioned as a potential beneficiary in the evolving AI landscape. This roundup of companies reflects Truist’s view on those well-positioned to capitalize on the advancements in AI, despite the extended timeline for broader adoption.
The report by Truist underscores the continued growth in the AI sector and its impact on enterprise software. As companies adapt to the changing technology environment, Truist’s analysis suggests that investments in AI will continue to play a critical role in shaping the future of business solutions across a wide range of industries. For investors seeking deeper insights into these AI-focused companies, InvestingPro offers comprehensive research reports covering over 1,400 US stocks, including detailed financial health metrics, valuation analysis, and expert insights to make informed investment decisions.
In other recent news, investment firm Piper Sandler has identified Autodesk (NASDAQ:ADSK), Synopsys (NASDAQ:SNPS), and Tyler Technologies as its top stock picks for 2025. Autodesk was lauded for its potential efficiency narrative and Synopsys for its anticipated merger with ANSYS (NASDAQ:ANSS), Inc. Tyler Technologies was recognized for its transition to a nearly 100% SaaS sales mix and solid financial performance. The company reported total revenues of $543.3 million in the third quarter, a 9.8% increase year-over-year, and an impressive 8% revenue growth.
In addition to these financial highlights, Tyler Technologies also announced a reshuffling of its executive team, including the introduction of a chief administrative officer role and the appointment of new chief marketing and chief legal officers. Truist Securities and Loop Capital maintained their Buy ratings on Tyler Technologies, while Piper Sandler and Baird increased their price targets to $701 and $700 respectively.
Analysts from Truist Securities and Loop Capital have expressed confidence in Tyler Technologies’ robust growth in the Software (ETR:SOWGn) as a Service (SaaS) sector. The company’s strategy to maintain its market leadership through consistent SaaS revenue growth was underscored, projecting to surpass that of its SaaS competitors. Furthermore, the company is expected to generate significant profits and free cash flow, bolstering confidence in its ability to meet long-term targets. These are recent developments in the company’s financial performance and analyst outlooks.
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