What is the new price target for Salesforce and ServiceNow?

The new price target has not been disclosed.

How did Atlassian's stock react to this upgrade?

Atlassian shares rose 6.6% after the upgrade, even though it did not directly involve the stock.

Should we expect similar upgrades for other software companies?

The upgrade may signal a shift in analyst sentiment, but it depends on each company's performance.

Guggenheim Upgrades Salesforce and ServiceNow to Buy

Guggenheim analyst John DiFucci upgraded Salesforce (CRM) and ServiceNow (NOW) to Buy, arguing that AI disruption fears have pushed valuations too low. Atlassian (TEAM) shares rose 6.6% on the news.

July 2, 2026

2 min read

Source: StockStory

Key Numbers

upgrade target

Buy

price jump teams

6.6%

Guggenheim analyst John DiFucci upgraded both Salesforce (CRM) and ServiceNow (NOW) to Buy, arguing that the AI-disruption fear that battered the software sector during the year had pushed valuations too low.

Rating Change

DiFucci previously rated both stocks as Neutral. He raised them to Buy with a new price target (not disclosed).

Analyst's Rationale

DiFucci believes the market overestimated the risks posed by AI to traditional software companies, creating an attractive buying opportunity. He noted that current valuations do not reflect the intrinsic value of these firms.

Context

The software sector has experienced significant volatility over the past year due to AI disruption fears. However, recent earnings from Salesforce and ServiceNow showed resilience, with both beating estimates. Other analysts remain divided, with some arguing valuations are still high.

Bottom Line

Guggenheim's upgrade signals a shift in sentiment toward the software sector, but investors should monitor actual performance amid increasing competition from AI-native solutions.

Frequently Asked Questions

Analyst John DiFucci believes AI disruption fears have pushed valuations too low, creating a buying opportunity.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.