** 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))