Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com -- Macquarie Equity Research has identified its top picks in the AI software sector, highlighting companies positioned to capitalize on the growing need for AI-driven cybersecurity solutions and robust software demand. The firm notes that Anthropic’s Project Glasswing announcement and Frontier Red Team blog on April 7 reinforce the emerging trend of fighting AI with AI in cybersecurity. Macquarie believes the heightened speed and scale of AI-driven intrusions will require significant technological advancements in red teaming, exposure management, and vulnerability management. While demand conditions in software appear intact, with hyperscaler revenue accelerating sequentially by 5 points to 35% year-over-year, the firm notes that job postings across its 40-company software index declined meaningfully in February and March.
Macquarie maintains an Outperform rating with a $310 price target. The firm recommends ADSK based on several potential catalysts, including increasing penetration in the greenfield construction market, differentiated AI innovations, improved efficiencies, and cross-selling opportunities from the new transaction model. ADSK delivered a healthy fourth-quarter beat and guided fiscal year 2027 above consensus, while cautioning that revenue tailwinds from the new transaction model are set to fade. The company is expected to report first-quarter earnings in late May. Macquarie remains bullish on ADSK’s progress in building a marketplace ecosystem, developing next-generation design tools, and applying AI to drive convergence across design and make processes.
Recently, Autodesk received several analyst updates, with firms like Wolfe Research and Stifel reiterating positive ratings based on the company’s AI strategy. However, BMO Capital and DA Davidson lowered their price targets, with BMO citing a need to monitor some fine-tuning in the sales organization.
Macquarie likes DDOG’s positive market dynamics, share-gain prospects, stable revenue model, integral AI positioning, multi-product adoption, and strong free cash flow generation. DDOG delivered a sizable top-line beat in the fourth quarter, with revenue accelerating relative to prior quarters. Metrics and management commentary pointed to broad-based strength across customer cohorts and major product areas. Management guided well ahead of prior first-quarter consensus revenue. The company is expected to report first-quarter earnings in early May, with new product launches anticipated at its DASH user conference scheduled for June 9-10.
Datadog was upgraded to Buy from Neutral by Guggenheim, which cited the company’s position as a beneficiary of AI-driven growth. The company also announced the general availability of its MCP Server, a tool that provides developers with access to live observability data for AI agents.
Macquarie favors ZS’s product differentiation, competitive position, and execution capabilities in a healthy cybersecurity market. The firm believes major cybersecurity platform vendors such as ZS are best positioned to buy or build capabilities needed to defend against AI-driven attacks. ZS delivered strong second-quarter revenue, beating the high end of guidance by $17 million, driven by large deals and broad-based volume strength, particularly in the Americas. The company raised fiscal year 2026 revenue guidance by an incremental $4 million at the high end. ZS is expected to report third-quarter earnings in late May, with new product launches anticipated at its Zenith Live user conference scheduled for June 8-10.
Zscaler was downgraded to Neutral from Buy by BTIG, which noted a shift in competitive dynamics following recent field checks. The company also announced an expansion of its data sovereignty capabilities, including a planned deployment in Canada.
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