Nomura reduced its estimates on the software sector on Monday. Concerns about Europe and slowing IT spending in North America were central in Nomura’s decision to trim estimates for numerous software companies. One analyst said that while the sector in general is suffering, it may still be a safe haven for investors.

“I think it’s going to be a rough couple of weeks getting through earnings season,” Rick Sherlund, Nomura head of technology equity research, told CNBC’s “Squawk on the Street.” “You have to set the bar a little lower for what the market has been telling us for the last couple of months — business is going to get tougher.”

Sherlund cited regional weakness in Europe, China, and North America as a cause of concern. He explained that these slowdowns hurt IT spending and create a currency headwind.

“If business is tougher, you’ve got more of a currency headwind,” Sherlund said. “The currency is going to be about a 9 percent headwind versus expectations of about 7 percent just a couple months ago.”

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