Guggenheim Upgraded Salesforce and ServiceNow While Saying AI Risks Are "Very Real" and Monetization Won't Materialize
The analyst layer on SaaS incumbents has split into two incompatible arguments: Guggenheim's John DiFucci upgraded both Salesforce and ServiceNow to Buy purely on valuation, explicitly writing he is "not upgrading because we see [ServiceNow] as an AI beneficiary," calling near-term AI monetization "unlikely to materialize" and AI risks "very real"; Morgan Stanley cut Salesforce to equal-weight on July 21 with a price target slashed from $287 to $185; and Monness Crespi & Hardt upgraded Workday to Buy at a $150 target after a ~45% drawdown. Nobody is arguing the incumbents win on AI — the bulls are arguing only that the disruption is already in the price. That is a meaningfully weaker thesis than the sector rebound of the past week implies.
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