Pegasystems price target raised to $60 from $50 at DA Davidson

Published 25/07/2025, 07:58
Pegasystems price target raised to $60 from $50 at DA Davidson

Investing.com - DA Davidson raised its price target on Pegasystems (NASDAQ:PEGA) to $60 from $50 while maintaining a Neutral rating on Thursday. The company, currently valued at $9.94 billion, has demonstrated strong momentum with a 68.81% return over the past year and 24.8% year-to-date growth.

The firm’s decision follows Pegasystems’ second-quarter results, which demonstrated ACV (Annual Contract Value) acceleration for another consecutive quarter.

DA Davidson noted that the ACV growth was driven by "continued high demand from customers in Pega’s business transformation capabilities, particularly with Blueprint."

The research firm expressed a positive view of the company, acknowledging Pegasystems has "a large opportunity in front of it."

Despite the price target increase, DA Davidson maintained its Neutral rating, stating that the current share price "fully reflects the growth in Pega’s business."

In other recent news, Pegasystems Inc . reported strong second-quarter 2025 financial results, with non-GAAP earnings per share of $0.28, surpassing consensus estimates of $0.23. The company also achieved revenue of $385 million, exceeding the expected $363 million. This performance was highlighted by a 9% year-over-year revenue growth to $384.5 million, with cloud revenue growing 24% to $166.7 million, accounting for 43% of total revenue. Pegasystems’ record net new annual contract value (ACV) growth accelerated to 16% year-over-year, exceeding consensus estimates by $53.5 million.

Following these results, several analysts adjusted their price targets for Pegasystems. JMP Securities raised its target to $78.00 from $63.00, maintaining a Market Outperform rating. Citi increased its price target to $70.00 from $66.00, citing strong demand for the company’s GenAI offerings. Barclays (LON:BARC) adjusted its price target to $58.00 from $50.00, noting consistent above-consensus performance. Additionally, Rosenblatt raised its target to $61.00 from $59.00, maintaining a Buy rating due to the company’s robust cloud growth. These developments reflect Pegasystems’ strong market position and performance in recent quarters.

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