Pegasystems stock price target raised to $60 from $52.50 at Loop Capital

Investing.com - Loop Capital raised its price target on Pegasystems (NASDAQ:PEGA) to $60.00 from $52.50 on Monday, while maintaining a Buy rating on the software company’s shares. The stock, currently trading at $53.32, has seen analyst targets ranging from $40.19 to $66.00, with a consensus recommendation leaning towards Buy.

The price target adjustment reflects Loop Capital’s refined estimates following Pegasystems’ recent two-for-one stock split, which became effective on June 23, 2025.

Loop Capital expressed increased confidence in its investment thesis after recent discussions with the company, citing Pegasystems’ strong exposure to legacy transformation opportunities and growing momentum around its GenAI Blueprint solution.

The firm also highlighted Pegasystems’ enhanced sales engine targeting new customers, a more aggressive share repurchase program, and what it considers an attractive valuation at approximately 5.5x EV/Revenue and 18x EV/FCF based on Loop Capital’s 2027 estimates.

Loop Capital believes these factors position Pegasystems for improving growth and profitability, potentially justifying multiple expansion above current levels.

In other recent news, Pegasystems Inc . has announced a series of developments that are capturing investor attention. The company recently completed a two-for-one stock split, doubling its share count and halving the price per share, which was approved by shareholders along with an increase in authorized common shares from 200 million to 400 million. Citi adjusted its price target for Pegasystems to $66, maintaining a Buy rating after the stock split, while also updating its earnings per share estimates for 2025 and 2026 to $1.90 and $2.04 respectively. In a separate development, Pegasystems achieved FedRAMP High Authority to Operate status for its generative AI solutions, enabling government agencies to utilize these tools while adhering to federal security standards. Additionally, DA Davidson raised its price target for Pegasystems to $50 from $47.50, citing the company’s positioning in AI, although maintaining a Neutral rating. This comes after Citi had previously raised its price target to $131, reflecting updated guidance that included a $100 million revenue increase and an $0.84 rise in EPS estimates. The company’s focus on GenAI capabilities and new customer opportunities through mid-market packaging were highlighted as key growth strategies. These recent developments indicate Pegasystems’ ongoing efforts to expand its market reach and optimize its financial performance.

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