Investing.com -- Citi analysts have updated their top picks in application software, favoring companies with stability and incremental upside drivers following a choppy Q4 earnings season.

The firm now ranks Monday.com, Intuit (NASDAQ: INTU ), Workiva (NYSE: WK ), and Box as its top software stocks.

According to Citi, "investor sentiment has shifted in software," with defensive positioning beginning to "warm up and shift somewhat to offense."

The firm notes that while macro uncertainty persists, HR software remains resilient due to "minimal tariff exposure," and SMB software appears healthier relative to enterprise budgets.

Q4 results were mixed, with Citi noting that "choppy trends” that “dampened initial optimism" heading into 2025.

Budgetary pressures slowed the expected migration to ERP systems, while regulatory concerns—including "DOGE fears" impacting Intuit and Appian—also weighed on sentiment, according to the bank.

However, the firm sees "signs of sentiment bottoming" after the software sector fell sharply earlier this year, with a recent 7% rebound off lows.

Citi said Monday.com has a "compelling entry point" at 34x EV/FCF for a company growing 20%+ with long-term platform opportunities.

Meanwhile, Intuit’s "strong F2Q performance" and "conservative guide" are said to position it well for tax season, with "underappreciated QBO strength."

Workiva has a "stable core business" with 20%+ subscription growth and overblown concerns on ESG regulatory shifts, said the bank, adding that Box’s new Enterprise Advanced suites and AI opportunities could drive "reacceleration with an attractive valuation."