Tech stocks, the darlings of 2023, might soar even higher. Last year’s 56.4% leap in tech propelled the S&P 500’s rally. Despite these dizzying heights, Deutsche Bank’s Brad Zelnick sees more runway. He’s betting on software to lead the charge.

Why Software? It’s All About the Fundamentals

Zelnick’s bullish stance hinges on better fundamentals and positive estimate revisions. He’s not counting on multiple expansion. Key drivers? Efficient growth, AI breakthroughs, cloud marketplaces, and M&A buzz.

Salesforce and Oracle: The Chosen Two

Zelnick’s picks? Buy-rated Salesforce and Oracle. He’s got big expectations for 2024.

Salesforce: Poised for a 20%+ Leap

Zelnick’s target for Salesforce? A cool $330. That’s over 20% up from its last close. After a stellar 98.5% rise in 2023, the momentum’s still strong. Salesforce’s secret sauce? Subscription revenue growth, leveraging AI, and a disciplined approach to spending and acquisitions.

Oracle: A 24.2% Upside Potential

Oracle’s not far behind. Zelnick’s target of $135 suggests a 24.2% increase. Oracle’s edge? A second-mover in public cloud, offering superior products. Plus, a $50 billion cloud database opportunity. Oracle’s back-office products? Market leaders, with big growth potential.

The Bottom Line

Deutsche Bank’s Zelnick is clear: software stocks, particularly Salesforce and Oracle, are the ones to watch in 2024. With solid fundamentals and strategic advantages, these tech giants are well-positioned to continue their upward trajectory. Keep an eye on their journey through the year.