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ServiceNow (NOW), Atlassian (NASDAQ:TEAM), structure (NYSE:INST) and VMware (NYSE:VMW) are investment firm Macquarie’s top picks in the enterprise software space, with the firm noting that they are actually “well positioned.” when there is an economic downturn.
Analysts Frederick Havemeyer and Garrett Hinds note that enterprise software companies are broadly well-positioned should the economy take a tumble, but those considered “best-of-breed” are likely to offer shareholders “solid” cash flow generation and loyalty Customers bring bases.
“While we would likely see increased churn, particularly from SaaS companies with a larger proportion of small to medium-sized businesses (as we saw at the start of the COVID-19 pandemic), we believe that with solid balance sheets, a think about it profitable growth and disciplined execution, enterprise software companies can weather the storm,” the analysts wrote.
Regarding ServiceNow (NOW), the analysts…
