Progress Software Corporation (NASDAQ:PRGS) is one of the best small tech stocks to invest in now. On January 16, as part of the company’s 2026 infrastructure software outlook, Citi lowered its price target on Progress Software from $57 to $54, while maintaining a buy rating. This adjustment came as the company expects the industry’s strong momentum in 2025 to continue in the coming year.
Earlier on January 5, Jefferies lowered its price target for Progress Software from $50 to $45, while maintaining a Hold rating. This decision was made as the company cited a cautious outlook for 2026. Jefferies expects the year to be marked by a gradual monetization of AI and emphasized that significant growth acceleration is necessary to address concerns about AI disintermediation.
With sector valuations in line with historical averages, Jefferies advised investors to be patient and take a more selective approach. However, the company remains confident that long-term value will ultimately emerge within the software layer.
Progress Software Corporation (NASDAQ:PRGS) provides software products that develop, deploy and manage AI-powered applications and digital experiences in the US and internationally.
While we recognize PRGS’s potential as an investment, we believe certain AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from Trump-era tariffs and the onshoring trend, check out our free report on the best AI stocks for short term.
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Disclosure: None. This article was originally published on Insider monkey.
