Investing.com -- Oppenheimer upgraded Freshworks Inc to "Outperform" from "Perform," given its potential turnaround and attractive valuation. The brokerage sees Freshworks as a strong thematic play on an improving small and medium business market in 2025.
Whereas PROS Holdings Inc (NYSE:PRO) was downgraded to "Perform" from "Outperform." Oppenheimer flagged uncertainties around its leadership transition in 2025 and a lack of clarity on achieving a more efficient growth and profitability model.
The rating change comes with a constructive 2025 software outlook, as the sector stabilizes after years of underperformance. Oppenheimer emphasized selectivity, favoring companies with durable growth, deep moats, and specific catalysts.
“We are more optimistic for the software group this year after three years of investors underweighting the space. The sentiment improvers will be more clarity about the macro with a potential cyclical pickup that tends to be good for small-cap growth, stimulus via a rollback on the regulatory burden,” analyst wrote.