Citi adjusts Pegasystems price target to $66 following stock split

Published 25/06/2025, 20:12
Citi adjusts Pegasystems price target to $66 following stock split

Investing.com - Citi maintained its Buy rating on Pegasystems (NASDAQ:PEGA) stock but adjusted its price target to $66.00 from $131.00 on Tuesday, reflecting the company’s recent two-for-one stock split. According to InvestingPro data, PEGA has shown strong momentum with a 72% return over the past year, while analysts maintain a consensus bullish stance with targets ranging from $40.19 to $65.50.

The software company announced the stock split on June 17, 2025, and implemented it after market close on June 20, 2025. Trading on the split-adjusted basis began on June 23, 2025.

Citi’s adjustment represents a technical change rather than a fundamental reassessment, as the firm maintained its Buy rating with a High Risk designation on Pegasystems shares.

The financial services firm updated its diluted earnings per share estimates for 2025 and 2026 to $1.90 and $2.04 respectively, down from the pre-split projections of $3.80 and $4.08.

Pegasystems, which develops customer engagement and operational excellence software, saw its share count double while the price per share was halved through the split, a move that typically aims to make shares more accessible to a broader range of investors.

In other recent news, Pegasystems Inc . has achieved FedRAMP High Authority to Operate status for its generative AI solutions, allowing federal agencies to deploy these tools while adhering to security and compliance standards. The certified solutions include Pega Coach (NYSE:TPR), Pega Knowledge Buddy, and Pega Automate, among others, with enhancements to Pega Cloud for Government for improved scalability. In financial developments, Pegasystems shareholders approved a two-for-one stock split and an increase in authorized common shares from 200 million to 400 million. Additionally, Citi analysts raised Pegasystems’ stock price target to $131, citing updated guidance and a $100 million increase in revenue projections. DA Davidson also adjusted its price target for Pegasystems to $50, maintaining a Neutral rating. Meanwhile, KeyBanc reaffirmed its Overweight rating with a $112 price target, noting efficiency gains from Pegasystems’ Blueprint tool. These developments reflect Pegasystems’ strategic focus on AI capabilities and potential growth opportunities in the market.

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