Rayjoy Software stock financial report season preview: raising target prices for Cloudflare (NET.US) and Datadog (DDOG.US), strongly recommending Palantir (PLTR) and other three targets.

Notice that several enterprise software companies such as Microsoft Corporation (MSFT.US), Cloudflare (NET.US), Datadog (DDOG.US), Fortinet (FTNT.US), and Rapid7 (RPD.US) have seen adjustments to their target prices by Mizuho Securities ahead of earnings season. Analyst Greg Moskowitz stated, "Our second quarter industry research has been overall positive. Public cloud/consumption data points are strong, and adoption of artificial intelligence (AI) remains robust. Additionally, after mixed results in the first quarter, there has been a slight improvement in cybersecurity demand. Software as a Service (SaaS) continues to show resilience, although valuation multiples are still under pressure due to investor concerns about AI-driven disruptive changes. We are adjusting some target prices as a result. From a valuation perspective, the enterprise value to sales ratio over the next 12 months (NTM) is currently 30% lower than the three-year average. We believe the risk/reward ratio for the next 12 months is attractive, but we also acknowledge that higher levels of unpredictability may bring some unusual challenges and a particularly rocky road. Nevertheless, ahead of earnings reports, the stocks we are most bullish on and recommend holding for June are Palantir (PLTR.US), Atlassian (TEAM.US), and ServiceNow (NOW.US)." Moskowitz raised the target prices for Cloudflare and Datadog from $260 and $220 to $310 and $300 respectively, while the targets for Fortinet and Rapid7 were increased from $86 and $8 to $125 and $11. On the other hand, he lowered the target price for Microsoft Corporation from $515 to $490.