DOGE cuts could negatively affect enterprise software names, particularly infrastructure. Conversely, the potential deployment of more automation software in the U.S. government could be a boon for some, according to the analysts at Truist.

"DOGE has two potentially offsetting outcomes for enterprise software," said Truist analysts, led by Joel Fishbein, in a Monday investor note. "On one hand, the clear prioritization of reduced spending and headcount could prove to be a headwind for vendors. On the other hand, the increased productivity and automation needed to efficiently sustain cost cuts could drive more reliance on software systems."

In this backdrop, Truist views ServiceNow (NYSE:NOW) and Tenable (NASDAQ:TENB), as the most exposed in infrastructure and cybersecurity, respectively.

Companies considered the most secure in this uncertain economic environment, include Check Point (CHKP), CrowdStrike (NASDAQ:CRWD), CyberArk (NASDAQ:CYBR), Elastic (NYSE:ESTC), SailPoint (NASDAQ:SAIL), Snowflake (NYSE:SNOW), Atlassian (NASDAQ:TEAM) and Zscaler (ZS), according to Truist.

As a result, Truist lowered its price target across many of the names in its coverage area:

• Atlassian to $300 from $350
• Elastic to $140 from $145
• ServiceNow to $950 from $1,100
• Snowflake to $210 from $225
• CrowdStrike to $450 from $460
• CyberArk to $425 from $450
• Tenable to $45 from $48

Truist also compiled a list showing how much of a company's revenue is tied to U.S. federal government contracts, when that figure is available:

• ServiceNow: 9%
• SailPoint: 6%
• CyberArk: 5%
• Varonis (VRNS): 5%
• Palo Alto Networks (PANW): 3-5%
• Fortinet (FTNT): 2-3%