NET - J.P. Morgan downgrades these high-multiple software names expecting a rotation with vaccine recovery

A rebalance of ratings across its software coverage has J.P. Morgan downgrading a number of names as it folds in an outlook for economic expansion starting in 2021's second quarter. That's largely not due to any change in the firm's stance on operating condition at the companies - which J.P. Morgan terms "tremendous" - but due mainly to an expected sector rotation that would coincide with a broader recovery, along with possible headwinds for the stocks similar to what they saw in 2010 (as well as some secular cybersecurity aspects). That rotation is leading it to upgrade cyclically sensitive software stocks. That includes design names that have direct exposure to fields that should be core to expansion, including manufacturing, industrial and construction: Autodesk (ADSK), Altair Engineering (ALTR), Cadence Design Systems (CDNS) and [[PTC]]. Meanwhile, it's also upgrading names that have small/medium-business exposure that could benefit from new business creation -

For further details see:

J.P. Morgan downgrades these high-multiple software names, expecting a rotation with vaccine recovery