LIVE MARKETS-A software 'shopping list' for patient investors

Reuters
Feb 10
LIVE MARKETS-A software 'shopping list' for patient investors

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A SOFTWARE 'SHOPPING LIST' FOR PATIENT INVESTORS
The sharp retreat in European software stocks may have gone too far, says Berenberg, who argues that investors are pricing AI as an existential threat to the entire sector.
After a deep dive into AI-related risks, the German bank concludes the picture is “far more nuanced” than recent market moves suggest.
"High-quality, enterprise-grade software companies – those with deep domain expertise and products embedded in customers’ workflows – are largely insulated from disruption and, in some cases, are already emerging as AI beneficiaries, such as cybersecurity," say Berenberg analysts including Nay Soe Naing. 
Berenberg says indiscriminate selling has pushed several strong names into oversold territory.
They advise investors to place high-quality names, such as their top picks - ATOSS Software AOFG.DE, CrowdStrike CRWD.O, Nemetschek NEKG.DE, Planisware PLNW.PA  and Zscaler  ZS.O - on a shopping list and build exposure once market sentiment inflects, something they say could take a few quarters.

(Danilo Masoni)

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EARLIER ON LIVE MARKETS:

KERING SHINES, INSURANCE DRAGS, CHEMICALS BOUNCE CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES STEADY, EARNINGS DOMINATE CLICK HERE

TRUMP ADMINISTRATION PREPARES TO GUT CLIMATE LAWS CLICK HERE

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