How to invest in US cloud software stocks? Piper Sandler strongly recommends "MAC"

Piper Sandler believes Adobe (ADBE.US), MongoDB (MDB.US) and Salesforce (CRM.US) are the best stocks to invest in cloud software stocks. Analysts led by Brent Bracelin at Piper Sandler said: "We recommend that large growth investors take more risk and add to their 'MAC' positions." MAC refers to Adobe, MongoDB and Salesforce. Bracelin added: "These are stocks that have underperformed the market, with average shares still 26% below their 52-week highs, despite healthy product and profit catalysts, and favorable risk-reward." MongoDB could accelerate growth after hitting a low in the second quarter. The stock has fallen 29% this year. Piper Sandler expects it to recover 29% of its fall to $335 over the next few quarters, as the company remains a high-quality database franchise. Adobe is also similar, and could recover this year on the back of its latest artificial intelligence products. Piper Sandler said: "The new innovation product cycle is underappreciated, which could help reinvigorate growth." Salesforce has risen 9% this year, but has fallen nearly 5% over the past six months. Bracelin said: "We expect Salesforce to rise 11% to $325, and 39% to $405 in a bull case." Piper Sandler rates Adobe "Overweight" with a target of $635; "Overweight" Salesforce with a target of $325; "Overweight" MongoDB with a target of $335.