Amplitude, Asana see bullish views at Piper Sandler, stocks climb

Shares of Amplitude (NASDAQ:AMPL) and Asana (NYSE:ASAN) rose on Monday after Piper Sandler upgraded the stocks to Overweight from Neutral, while highlighting trends for the larger software industry.

The firm also took other rating actions, which included — downgrading AppFolio (APPF) to Neutral from Overweight with a $265 price target; ZoomInfo Technologies (ZI) being cut to Underweight from Neutral with price target of $10, down from $11; and BlackLine (BL) being downgraded to Underweight from Neutral with a $60 price target.

Analysts led by Brent Bracelin said that it took over 70 years for the software industry to exceed $1T annually in 2024. However, the next $1T annual spend could occur within seven years, in part boosted by the new AI era, according to the analysts.

The analysts added that 2025-2026 could usher in a renewed appetite to invest in the application and data layers after three years of moderating growth.

Piper Sandler's Top Ideas to Own in 2025 are Microsoft (MSFT), Salesforce (CRM), and Snowflake (SNOW). Bracelin and his team said AI adoption narratives could have a bigger influence on stock direction than valuation multiples. Three large strategics with well-defined AI product cycles include, Microsoft, Salesforce and Snowflake, they added.

The analysts noted that the most controversial stocks with the most upside potential include MongoDB (MDB) and Adobe (ADBE). Sentiment has clearly soured, but any proof points to the contrary could spark a sharp recovery, according to the analysts.

Bracelin and his team said that the addition of another $1T software spend by 2032 suggests that we are entering a new period where — the "software pond" could double to about $2T in a short span of seven years; the "biggest fish" are best positioned to capitalize on this AI-augmented expansion; "software minnows" need to quickly adapt or be acquired in order to thrive in the "Big Pond."

The analysts noted that examples of smaller firms well poised to thrive include Procore Technologies (PCOR) in construction, OneStream (OS) in accounting, Global-E Online (GLBE) in cross-border retail, and ServiceTitan (TTAN) in trade services.

Amplitude (AMPL): The firm increased Amplitude's price target to $15 from $11. The analysts said Amplitude  remains in the midst of an operational turnaround that appears to be picking up steam, underscored by solid net new annual recurring revenue build, large expansions, and new leadership adds.

The analysts noted that while the turnaround remains a work-in-progress, they are encouraged by new leadership and small technology tuck-in acquisitions which could help spark a recovery.

Asana (ASAN): Piper Sandler increased Asana's price target to $27 from $19. Bracelin and his team said they were encouraged by Asana's stabilizing fundamentals, increasing contribution from non-tech verticals (about 66% of sales), AI product innovation, and commitment to achieving profitability and positive free cash flow.

The analysts noted that the company could see further multiple expansion as we see broader proof points on AI Studio adoption and increased internal cost discipline.

Amplitude's stock was up about 6%, while Asana's shares rose around 10% on Monday.