<Research>Jefferies Advises Investors to Keep Underweight Stance on Software Stocks

Written by Emily J. Thompson, Senior Investment Analyst

Source: aastocks

Updated: Jan 05 2026

0mins

Source: aastocks

Jefferies' Recommendation: Jefferies advises investors to maintain an underweight position in software stocks due to slowing growth, suggesting a more selective investment strategy as AI commercialization progresses towards 2026.
Preferred Stocks: The report highlights preferred stocks across various market caps, including mega-cap stocks like Microsoft and META, large-cap stocks such as Intuit and Oracle, mid-cap stocks like Procore and Unity, and small-cap stocks including Upwork.
Stock Ratings Changes: Jefferies upgraded IBM's rating from Hold to Buy with a target price increase, while downgrading Adobe from Buy to Hold and reducing its target price.
API Crude Oil Stock Change: The API reported a decrease in crude oil stock change for December 26 in the U.S., with a figure of 1.700M, down from the previous 2.400M.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.