Bullish indicating open at $55-$60, IPO prices at $37
On Tuesday, DA Davidson analysts raised the price target for Pegasystems (NASDAQ:PEGA) stock to $95 from $90 while maintaining a Neutral rating. The $8.3 billion market cap company, currently trading at $96.96, is fairly valued according to InvestingPro Fair Value metrics. This adjustment follows the company’s annual Pegaworld conference, where new data points and demonstrations were presented.
The analysts noted that Pegasystems’ Blueprint is becoming increasingly strategic in its customer and partner engagements, growth strategy, and allocation of go-to-market resources. These developments were highlighted during the event. The strategy appears to be working, with InvestingPro data showing impressive 14.29% revenue growth and industry-leading gross profit margins of 75.74%.
In addition to the strategic insights shared at the conference, Pegasystems provided an intra-year update to its annual guidance. The company raised its revenue and earnings per share projections based on the performance in the first quarter.
Pegasystems’ Chief Financial Officer and Investor Relations team are scheduled to participate in the Nashville Tech Conference from June 9-11, where they are expected to engage with analysts and investors.
In other recent news, Pegasystems has made significant announcements at its annual PegaWorld conference in Las Vegas, highlighting key developments for investors. The company revised its 2025 revenue guidance upward and set ambitious targets for achieving sustainable double-digit annual contract value growth and $700 million in free cash flow over the next three to five years. Pegasystems also announced the expansion of its target market from 1,000 to over 10,000 companies, leveraging its Blueprint offering to enhance customer understanding and redeploy sales resources effectively. Analysts from William Blair, JPMorgan, and Citi have maintained positive ratings on Pegasystems stock, citing increased confidence in its Blueprint/GenAI strategy and the potential for legacy modernization.
Moreover, Citizens JMP analysts raised the price target for Pegasystems stock to $125, reflecting a positive outlook on the company’s future prospects. Pegasystems introduced advanced capabilities in its Pega Blueprint to expedite the transformation of legacy systems into modern, cloud-native applications. These enhancements aim to reduce application development timelines and streamline data integration, providing a competitive edge for organizations. The company’s strategic initiatives and partnerships are expected to drive significant market growth, with projections for its total addressable market to expand from $90 billion in 2025 to over $150 billion by 2029.
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