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Why One Firm Thinks It Might Be Time to Start Buying Software Stocks – Barron’s

Has the time come to start tiptoeing back into enterprise software stocks? The answer is a decided maybe, according to Macquarie Research, which launched coverage of the group on Wednesday with a mammoth 687-page report, some guarded optimism about the sector, and a handful of stock recommendations.

In the report, analysts Sarah Hindlian-Bowler and Frederick Havemeyer write that they have a “more constructive view” on the group than most analysts on the Street. Their core thesis is that software companies generally have business models that “remain superior to most, with recurring revenues, robust balance sheets, and no end to the need for digital transformation, automation, data integrity and a single source of data truth.”