Pegasystems stock price target raised to $61 from $59 at Rosenblatt

Published 23/07/2025, 20:36
Pegasystems stock price target raised to $61 from $59 at Rosenblatt

Investing.com - Rosenblatt raised its price target on Pegasystems (NASDAQ:PEGA) to $61.00 from $59.00 on Wednesday, while maintaining a Buy rating following the company’s second-quarter results. According to InvestingPro data, PEGA has shown strong momentum, trading near its 52-week high with impressive returns over the past year and three months.

Pegasystems reported Q2 2025 revenue growth of 9% year-over-year to $384.5 million, exceeding Rosenblatt’s estimate of $367.1 million and consensus expectations of $361.8 million. The performance was driven by cloud revenue growth of 24% year-over-year to $166.7 million, which represented 43% of total revenue. InvestingPro analysis shows the company operates with moderate debt levels and maintains strong cash flows to cover interest payments.

The company’s Annual Contract Value (ACV) reached $1,514 million, up 16% year-over-year (14% in constant currency), surpassing Rosenblatt’s estimate of $1,476.1 million. Pega Cloud ACV grew 28% year-over-year to $761.1 million, reflecting the ongoing shift from on-premise implementations.

Pegasystems maintained its fiscal year 2025 guidance, expecting total ACV growth of 12%. The company typically does not adjust its annual guidance during quarterly reports. InvestingPro reveals that three analysts have recently revised their earnings estimates upward, with net income expected to grow this year. Subscribers can access 14 additional ProTips and comprehensive analysis in the Pro Research Report.

Rosenblatt’s price target increase was based on marginal adjustments to its FY25-26 estimates and the introduction of FY27 estimates following the Q2 results.

In other recent news, Pegasystems Inc . reported its second-quarter 2025 financial results, surpassing expectations in both earnings and revenue. The company achieved an earnings per share (EPS) of $0.28, which exceeded the anticipated $0.24, representing a 16.67% surprise. Revenue also outperformed forecasts, reaching $384.52 million compared to the projected $362.5 million, marking a 6.07% increase. These results demonstrate Pegasystems’ strong financial performance in the recent quarter. Despite this, the company’s stock saw a minor decline in premarket trading. Analyst firms have not provided any recent upgrades or downgrades following these earnings results. Investors will likely keep an eye on Pegasystems as it continues to navigate the market landscape.

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