Citi Trims Progress Software (PRGS) PT to $54, Maintains Buy Rating

Progress Software Corporation (NASDAQ:PRGS) is one of the best small cap tech stocks to invest in now. On January 16, as part of the firm’s 2026 infrastructure software outlook, Citi reduced its price target for Progress Software from $57 to $54 while maintaining a Buy rating. This adjustment came as the firm anticipates that the sector’s strong 2025 momentum will persist throughout the upcoming 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 firm cited a cautious outlook for 2026. Jefferies anticipates the year will be characterized by gradual AI monetization and emphasized that significant growth acceleration is necessary to alleviate concerns regarding AI disintermediation.

As sector valuations align with historical averages, Jefferies advised investor patience and a more selective approach. However, the firm remains confident that long-term value will eventually accrue 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 acknowledge the potential of PRGS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.