DA Davidson raises Pegasystems stock price target on AI positioning

Published 20/06/2025, 15:14
DA Davidson raises Pegasystems stock price target on AI positioning

Investing.com - DA Davidson raised its price target on Pegasystems (NASDAQ:PEGA) to $50.00 from $47.50 on Friday, while maintaining a Neutral rating on the software company’s shares. The company, currently trading at $99.72, has demonstrated strong performance with a 75.8% return over the past year and impressive gross profit margins of 75.7%.

The price target increase follows a fireside chat the firm hosted on Wednesday with Adobe (NASDAQ:ADBE)’s CFO Dan Durn and Steven Day, CFO of Adobe’s DX Business, where they discussed competitive positioning, AI impact, and growth strategies.

DA Davidson noted it came away "incrementally more positive" about Adobe’s commercially safe approach to digital content generation, disciplined expense management, and top line resiliency.

The firm stated it continues to believe Adobe is "an AI-winner" over the long term, with current pricing representing "an attractive entry point for a category leader with best in class margins."

DA Davidson reiterated its Buy rating and $500 price target on Adobe, representing a valuation of 22 times the company’s projected fiscal year 2026 earnings per share.

In other recent news, Pegasystems Inc . has made several noteworthy announcements that could interest investors. The company has adjusted its fiscal year 2025 revenue guidance, increasing it by approximately 6% to $1.7 billion, reflecting a 13.6% year-over-year growth. This adjustment follows a positive first-quarter revenue performance and increased confidence in its business pipeline. Additionally, Pegasystems shareholders have approved a two-for-one stock split and an increase in authorized shares from 200 million to 400 million, with the stock split set to be distributed as a stock dividend.

Analysts have responded to these developments with various updates. Citi analysts raised their price target for Pegasystems to $131, maintaining a Buy rating, influenced by the company’s updated guidance and focus on GenAI capabilities. KeyBanc analysts reaffirmed their Overweight rating and $112 price target, citing efficiency gains from the company’s Blueprint tool. Rosenblatt and Needham analysts also raised their price targets to $112, highlighting Pegasystems’ AI-related product announcements and strategic partnerships as factors contributing to the improved financial outlook.

These recent developments underscore Pegasystems’ strategic initiatives and the positive reception from analysts, reflecting confidence in the company’s growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.