Jefferies has released a report recommending investors maintain an underweight position in software stocks in light of slowing growth momentum that drags them below other industries such as semiconductors.
From Jefferies' perspective, 2026 will be another year for the gradual AI commercialization, which will require more significant growth contributions and accelerated performance to alleviate market concerns about AI disintermediation. As such, investment strategies need to be more selective.
Regarding Jefferies' preferred stocks, the mega-cap stocks include Microsoft (MSFT.US) and META (META.US); large-cap stocks include Intuit (INTU.US), Atlassian Corporation (TEAM.US), and Oracle (ORCL.US); mid-cap stocks include Procore (PCOR.US), Unity (U.US), and Wix.com (WIX.US); small-cap stocks include Upwork (UPWK.US).
The broker also upgraded IBM (IBM.US)'s rating from Hold to Buy and raised its target price from USD300 to USD360, while downgrading Adobe (ADBE.US) from Buy to Hold and cutting its target price from USD500 to USD400.
~
AAStocks Financial News
Web Site: www.aastocks.com
| SG Top Picks |
| Stock & Type |
Code |
Strike(Call Level) |
Last |
Effective Gearing |
| MSFT (C) |
10744 |
600 (-) |
0.031 |
16.5 X |
| MSFT (C) |
11006 |
550 (-) |
0.295 |
8.1 X |
| MSFT (P) |
10715 |
435 (-) |
0.167 |
10.5 X |
| META (C) |
10003 |
900 (-) |
0.082 |
10.7 X |
| META (P) |
10757 |
700 (-) |
1.300 |
4.5 X |
