Top 10 software stocks to buy in 2020

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<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Software companies are facing a good year."data-reactid =" 11 ">Software companies are facing a good year.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Tech stocks were brand new in 2019 and software stocks were no exception. The group has grown about 40% year-over-year, and Bank of America analyst Kash Rangan says that top software stocks are expected to see more upside in 2020. Bank of America predicts growth in information technology spending of 2.8% versus 1.2% in 2020. According to Rangan, reducing trade risk and stabilizing the global economy should serve as a tailwind for software stocks. Here are the top ten Bank of America software stocks bought in 2020. "Data-reactid =" 12 "> Technical stocks were brand new in 2019, and software stocks were no exception. Bank of America analyst Kash Rangan says the top software stocks will have more upside in 2020 The Bank of America predicts growth in information technology spending of 2.8% in 2020 after 1.2% in 2019. In addition, Rangan says that trade should be eased. The risk and stabilization of the global economy should be considered Serve Tailwind for Software Titles Here are the top ten Bank of America software titles to buy in 2020.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Adobe (ticker: ADBE)"data-reactid =" 13 ">Adobe (ticker: ADBE)

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "According to Rangan, Adobe deserves a premium rating in relation to its Because of its massive, overall addressable market and its free cash flow opportunities, it believes that the share is able to achieve upside potential even if it is significantly discounted to the current level big cap Peer Group, which trades with an average profit multiplier of 33. While most investors and analysts focus on the next 12 months, Rangan sees an opportunity for Adobe to add value for at least the next five years. Bank of America has a "buy" rating and a target price of $ 350 for ADBE shares. "Data-reactid =" 14 "> According to Rangan, Adobe deserves a top rating from its competitors due to its overall addressable market and free cash flow opportunities. However, it does say that the stock is despite a significant discount to its large-cap peer group , which trades with an average earnings multiplier of 33, has room for upward movement, according to Adobe, Bank of America has a buy recommendation and a target price of $ 350 for ADBE shares.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Salesforce.com (CRM)"data-reactid =" 15 ">Salesforce.com (CRM)

Salesforce is trading at 15% off its peer group, based on Rangan's estimated enterprise value-to-revenue ratio for 2020. While Salesforce may not be reporting smaller competitors' growth numbers, its size offers unique scaling benefits in the cloud services industry. According to Rangan, Salesforce differs from other software stocks in the combination of organic sales growth, margin expansion opportunities and acquisition synergies. According to Rangan, Salesforce should also increase its market share and expand its addressable market over time. Bank of America has a buy recommendation and a target price of $ 200 for CRM stocks.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Intuit (INTU)"data-reactid =" 17 ">Intuit (INTU)

<p class = "Canvas-Atom-Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "According to Rangan, the ecosystem for small businesses is on the right track 2020 and new product launches, such as QuickBooks Online Live and QBO Advance, could serve as positive catalysts for Intuit stocks, and Intuit has had a success story of successfully upselling services for both free and paid customers Earnings and sales The expectations for 2020 are too low. He also predicts double-digit, long-term sales and earnings growth and says Intuit should double sales with TurboTax Live Services in fiscal 2020. Bank of America has a buy rating and price target of $ 303 for INTU stock. According to Rangan, the small business ecosystem is on its way to 2020, and new product launches such as QuickBooks Online Live and QBO Advance could serve as positive catalysts for Intuit stocks. Intuit has a track record of successfully upselling services for both free and paid services. According to Rangan, the consensus gains and sales expectations for 2020 are too low. He also expects double-digit, long-term sales and earnings growth and says Intuit should double sales with TurboTax Live Services in fiscal 2020 "rating and price target of $ 303 for INTU stock.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Twilio (TWO)"data-reactid =" 19 ">Twilio (TWLO)

The Twilio share recovered in the second half of 2019 after an impressive 18-month run. Analyst Nikolay Beliov says investors can expect the cloud communications giant to get back on its feet in 2020 and exceed general sales and earnings expectations. According to Beliov, investors were overly concerned about possible regulatory problems. He estimates that Twilio could see sales growth of more than 36% in 2020, including new business growth of more than 13%. Bank of America has a buy rating and a target price of $ 138 for TWLO shares.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Splunk (SPLK)"data-reactid =" 21 ">Splunk (SPLK)

<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "According to Rangan, Splunk has made the breakthrough technology, The company addressed investor concerns in the last quarter when it saw a 53% increase in annual recurring income (ARR) to $ 1.439 billion and an 86% increase in cloud ARR to $ 368 million. Rangan forecasts more than $ 2 billion in 2020 and nearly $ 3 billion by fiscal year 2022. According to Rangan, Splunk should achieve a turning point in free cash flow in the long term and generate a positive cash flow of $ 1 billion in 2023 "Buy" rating and a target price of $ 170 for SPLK shares. "data-reactid =" 22 "> According to Rangan, Splunk has breakthrough technology that eased investor concerns last quarter by seeing a 53% increase in annual recurring income (ARR) to $ 1.439 billion and cloud ARR increased 86% to $ 368 million.Rangan forecasts an ARR of more than $ 2 billion and a value of nearly $ 3 billion by fiscal year 2022. According to Rangan, Splunk should have free cash in the longer term -Flow Turning Point Reach and Generate Positive Cash Flow of $ 1 Billion in 2023. Bank of America has a buy rating and a target price of $ 170 for SPLK shares.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "RingCentral (RNG)"data-reactid =" 23 ">RingCentral (RNG)

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "RingCentral offers cloud-based business communication systems. According to Beliov, RingCentral's partnership with Avaya, announced in October, is a "revolutionary" deal that will give RingCentral instant access to 25% of the unified communication market. Initial reviews of the Avaya partnership, which will start in the first quarter of 2020, have received positive feedback from providers. Beliov's partners believe that Avaya Cloud Office could ultimately penetrate 50% of existing Avaya customers. Beliov estimates the Avaya partnership at $ 70 per RingCentral share. Bank of America has a "buy" rating and a target price of $ 198 for RNG shares. Data-reactid = "24"> RingCentral offers cloud-based business communication systems. According to Beliov, the RingCentral partnership with Avaya announced in October is a "fundamental change". This agreement gives RingCentral instant access to 25% of the unified communications services market. Previous reviews of the Avaya partnership, which will start in the first quarter of 2020, have received positive feedback from providers. According to Beliov, the partners believe that Avaya Cloud Office may be successful. 50% penetration of existing Avaya customers. Beliov estimates the Avaya partnership at USD 70 per RingCentral share. Bank of America has a buy rating and a price target of 198 USD for RNG shares.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Coupa software (COUP)"data-reactid =" 25 ">Coupa software (COUP)

Coupa is a cloud-based business spend management company. Analyst Brad Sills said organic invoice growth of 41% in the last quarter was impressive and early adoption of Coupa Pay is encouraging, especially for large customers. According to Sills, Coupa should continue to increase sales by around 35% per year and increase its market share. He also says that Coupas' installed base of 988 large and medium customers, ease of implementation and network of 4 million suppliers – and growth – are different from the competition. Bank of America has a buy recommendation and a target price of $ 185 for COUP.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "HubSpot (HUB)"data-reactid =" 31 ">HubSpot (HUBS)

HubSpot offers cloud-based inbound marketing tools. According to Sills, price increases and growth in HubSpot's central marketing area, as well as sales and service contributions, should result in annual sales growth of at least 30% over the next three to five years. According to Sills, investors can expect the recent increase in the selling price by 25% and the reorientation towards sales processing to increase invoice growth to around 35%. Sills forecasts sales growth of 14% in marketing subscriptions for the 2020 financial year. Bank of America has a buy rating and a target price of $ 190 for the HUBS share.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Avalara (AVLR)"data-reactid =" 33 ">Avalara (AVLR)

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "Avalara is a cloud-based provider of Compliance with tax regulations Software. According to Sills, the increase in customer numbers is evidence of the value of Avalara products, and a worldwide increase in tax regulations should spur demand. Rising average selling prices suggest that over time the company will be able to sell itself to existing customers. According to Sills, the change of chief financial officer will go smoothly in March 2020, as the future CFO, Ross Tennenbaum, previously served as head of the company's strategic initiatives. Bank of America has a buy rating and a target price of $ 100 for AVLR shares. Data-reactid = "34"> Avalara is a cloud-based provider of tax compliance software. According to Sills, increasing customer numbers prove the value of Avalara products and a worldwide increase in tax regulations should spur demand. Rising average selling prices indicate that over time the company has the ability to sell itself to existing customers. “According to Sills, the change of chief financial officer will go smoothly in March 2020 given the future CFO Ross Tennenbaum. Previously, Bank of America led strategic initiatives for the company and had a buy rating and a target price of $ 100 for AVLR shares.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Working day (WTAG)"data-reactid =" 35 ">Working day (WTAG)

Workday is a service provider for human capital management and financial solutions. According to Rangan, the underperformance of Workday stock in 2019 was mainly due to the poor forecast, but the company's underlying numbers and its long-term growth prospects remain impressive. According to Rangan, the forecasts for sales growth in the company's human capital management segment, which is expected to be in its mid-teens in the 2021 financial year, are conservative. In addition, rising attach rates, more platform deals and international expansion could be bullish catalysts. According to Rangan, Workday could triple its sales to $ 11 billion by fiscal 2025. Bank of America has a buy rating and a target price of $ 260 for WDAY shares.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Top software stocks to buy in 2020:"data-reactid =" 37 ">Top software stocks to buy in 2020:

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "- Adobe (ADBE) "data-reactid =" 38 "> – Adobe (ADBE)

<p class = "Canvas-Atom-Canvas-Text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "- Salesforce.com (CRM) "data-reactid =" 39 "> – Salesforce.com (CRM)

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "- Intuit (INTU) "data-reactid =" 40 "> – Intuit (INTU)

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "- Twilio (TWO) "data-reactid =" 41 "> – Twilio (TWLO)

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "- Splunk (SPLK) "data-reactid =" 42 "> – Splunk (SPLK)

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "- RingCentral (RNG) "data-reactid =" 43 "> – RingCentral (RNG)

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "- Coupa software (COUP) "data-reactid =" 44 "> – Coupa software (COUP)

<p class = "canvas-atom canvas-text MB (1.0em) MB (0) – SM MB (0.8em) – SM" type = "text" content = "- HubSpot (HUB) "data-reactid =" 45 "> – HubSpot (HUBS)

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "- Avalara (AVLR) "data-reactid =" 46 "> – Avalara (AVLR)

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "- Workday (WTAG) "data-reactid =" 47 "> – working day (WTAG)

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