By Tae Kim

The recent drop in software sector stock prices is creating attractive buying opportunities for Snowflake, Microsoft, and Intuit, according to Jefferies.

Analyst Brent Thill reiterated his Buy ratings for the stocks. His price targets are $300, $675, and $850 for Snowflake, Microsoft and Intuit, respectively.

"AI fears are too harsh," he wrote in a note Sunday. "While the AI transition is more disruptive than the shift to Cloud, incumbents that embrace the transition should emerge as L-T winners as IP value resides in software."

Thill said there are several catalysts for rebound in software stock prices including improving revenue growth from higher AI tool sales and more clarity on how the companies will work with leading AI model providers.

"We believe some of the AI fears are overstated with value ultimately accruing to software, though incumbents must remain nimble and reinvent themselves with the latest AI," the analyst wrote.

In midday trading Monday, Snowflake stock was up 3.8% to $174.79 and Microsoft was up by 2.6% to $411.55. Intuit was off by 1.2% to $438.49.

Write to Tae Kim at tae.kim@barrons.com

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February 09, 2026 12:47 ET (17:47 GMT)

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