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Investing.com - Jefferies has reduced its price target on Progress Software (NASDAQ:PRGS) to $50.00 from $60.00 while maintaining its Hold rating on the stock. The company is currently trading at $42.61, near its 52-week low of $40.29, though InvestingPro analysis suggests the stock may be undervalued.
The firm noted that Progress Software delivered strong fiscal third-quarter results with $250 million in revenue, exceeding expectations by $10 million, driven by broad-based product strength, particularly in ShareFile and OpenEdge offerings. The company maintains impressive gross profit margins of 85.71% and has achieved 22.1% revenue growth over the last twelve months.
Jefferies highlighted management’s comments regarding continued progress on the ShareFile integration, a key focus area for the company’s growth strategy.
The fiscal year 2025 guidance largely reflected a pass-through of the fiscal third-quarter beat with no changes to fourth-quarter expectations, according to the research note.
At 8 times calendar year 2026 earnings per share, Jefferies observed that Progress Software’s valuation appears inexpensive compared to peers, but maintained its Hold rating due to "limited catalysts to accelerate pro-forma growth."
In other recent news, Progress Software Corporation reported financial results for the third quarter of 2025 that exceeded expectations. The company’s earnings per share (EPS) reached $1.50, outperforming the anticipated $1.30, representing a 15.38% surprise. Revenue for the quarter was $250 million, surpassing the forecast of $240.11 million. These figures highlight a strong performance for the company during this period. Analysts had projected lower numbers, making the actual results notably positive. Progress Software’s ability to surpass these estimates may draw increased attention from investors and analysts alike. This development is part of a series of recent updates concerning the company.
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