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On Tuesday, JPMorgan analysts reiterated their Overweight rating and maintained a $101.00 price target on Pegasystems stock (NASDAQ: NASDAQ:PEGA), the $8.3 billion market cap software company. According to InvestingPro data, PEGA’s stock is currently trading near its Fair Value, with analyst targets ranging from $78 to $125. This decision followed Pegasystems’ Investor Day in Las Vegas, held alongside its annual user conference, PegaWorld 2025.
The event showcased significant enhancements to Pegasystems’ Gen AI Blueprint capabilities. These advancements enable enterprises to transform legacy technology processes rapidly. The Blueprint now facilitates modernizing workflows, designing data models, and creating product previews across various channels with minimal guidance.
During the Investor Day, Pegasystems updated its long-term model, revising its 2025 revenue guidance upward. The company, which boasts impressive gross margins of 75.7% and achieved 14.3% revenue growth in the last twelve months, highlighted improvements in its sales organization, driven by Blueprint. This has doubled the client-facing time for sales representatives and expanded the target company list from the F1,000 to the F10,000.
Pegasystems also introduced a new partnership approach, allowing partners to build blueprints using their intellectual property. These developments align with Pegasystems’ strategy to capitalize on legacy modernization opportunities and strengthen its free cash flow generation, according to JPMorgan analysts.
The analysts expressed a positive outlook on Pegasystems’ rapid innovation in its Gen AI strategy and its potential to modernize legacy systems efficiently. InvestingPro subscribers can access 15+ additional insights about PEGA, including detailed financial health metrics and comprehensive valuation analysis in the Pro Research Report.
In other recent news, Pegasystems has updated its financial outlook, raising its calendar year 2025 revenue expectations by $100 million and earnings per share by $0.84, following strong first-quarter performance. The company aims to significantly increase its free cash flow, targeting $700 million by 2028, under a consistent low-teen annual contract value growth framework. Citi analysts maintained a Buy rating on Pegasystems, expressing confidence in the company’s Blueprint/GenAI strategy and the potential for increased free cash flow. Additionally, Citizens JMP analysts raised Pegasystems’ stock price target to $125 from $110, maintaining a Market Outperform rating after attending the PegaWorld 2025 conference. At the conference, Pegasystems unveiled several new features, including the expansion of its Pega Blueprint capabilities, which aim to streamline legacy system transformations using advanced AI. The company also introduced the Pega Agentic Process Fabric, a new service designed to enhance automation by orchestrating AI agents and systems. Furthermore, Pegasystems announced AI enhancements to its Pega App Studio, aimed at assisting developers with application development and improving efficiency. These developments underscore Pegasystems’ ongoing commitment to innovation and enterprise transformation.
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