Piper Sandler Names Top Industrial Software Stocks Amid Market Shift

Investing.com -- Piper Sandler has transferred coverage of three industrial software companies with Overweight ratings, identifying them as high-quality assets positioned to withstand current market challenges. The firm notes a bifurcation in the software market between winners and losers, with these companies offering mission-critical workflows, domain expertise, and proprietary data that provide relative insulation from disruption.

1. Tyler Technologies, Inc. (TYL)

Piper Sandler set a price target of $450 and assigned an Overweight rating. The company supports mission-critical workflows across its public sector customer base, including courts and justice, public safety, local government, and schools. Tyler's software is deeply embedded in regulatory and administrative processes where reliability, compliance, security, and long-term customer relationships are prioritized. The firm notes that Tyler benefits from a large and fragmented customer base, ongoing cloud migration, cross-sell opportunities, and significant switching costs once its products become integrated into government operations. Piper Sandler views Tyler's public sector focus as providing the greatest degree of defensiveness among the three companies, with AI expected to be more complementary than existential to its platform.

2. Procore Technologies, Inc. (PCOR)

The firm maintained its $68 price target with an Overweight rating. Construction remains a large, under-digitized market, and Procore's ability to connect owners, general contractors, and subcontractors creates network effects that support continued platform expansion. The company's system-of-record position, breadth, proprietary project data, and integration into mission-critical processes provide insulation from AI disruption. Piper Sandler sees a clear path to modest revenue growth acceleration in fiscal year 2026, coupled with a more meaningful margin expansion story.

3. Autodesk, Inc. (ADSK)

Piper Sandler adjusted its price target to $300 with an Overweight rating. Autodesk maintains one of the strongest franchises in design and engineering software, supported by deeply embedded workflows, proprietary design data, and high switching costs across architecture, engineering, construction, manufacturing, and media. The company's move toward more flexible subscriptions, improved monetization, and broader platform capabilities should support durable recurring revenue growth. While Piper Sandler expects debates on potential disruption from AI developments, the firm believes Autodesk owns valuable context that will be important going forward.

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