Bullish indicating open at $55-$60, IPO prices at $37
On Wednesday, Rosenblatt analysts raised the price target for Pegasystems (NASDAQ:PEGA) stock to $112 from $101, while maintaining their Buy rating. The decision followed Pegasystems’ recent PegaWorld conference and Investor Day, where the company unveiled new AI-related product announcements and updated its fiscal year 2025 revenue guidance. According to InvestingPro data, PEGA’s stock has delivered an impressive 77% return over the past year, with analysts’ targets now ranging from $78 to $125.
During the event on Monday, Pegasystems adjusted its revenue forecast for FY25 by approximately 6%, setting it at $1.7 billion, up from $1.6 billion. This revision indicates a year-over-year growth of 13.6%, reflecting a positive Q1 revenue performance reported in April and increased confidence in its business pipeline despite broader economic challenges. The company’s strong financial health is evidenced by its impressive 76% gross profit margin and moderate debt levels, as reported by InvestingPro.
Rosenblatt analysts highlighted the significance of Pegasystems’ strategic initiatives, particularly the momentum of its Blueprint product and collaboration with Global Systems Integrator (GSI) partners. These efforts are expected to drive more workloads in the coming year, contributing to the company’s improved financial outlook.
The analysts noted that Pegasystems typically provides annual guidance without quarterly updates. The latest adjustments and announcements have led to a marginal increase in their forecast, prompting the revised price target.
Pegasystems, listed on NASDAQ under the ticker PEGA, continues to focus on expanding its AI capabilities and enhancing its market position through strategic partnerships and product innovation.
In other recent news, Pegasystems has announced updates to its fiscal year 2025 revenue guidance, increasing projections to $1.7 billion from $1.6 billion. This adjustment reflects a year-over-year growth of 13.6%, driven by a strong first-quarter performance and a positive outlook for the company’s pipeline. Pegasystems’ annual PegaWorld conference and Investor Day introduced new AI-related products, leading Needham analysts to raise the stock’s price target to $112 while maintaining a Buy rating. Similarly, DA Davidson adjusted their price target to $95, citing strategic insights from the conference. William Blair reiterated an Outperform rating, noting Pegasystems’ expanded target market and ambitious growth goals.
JPMorgan analysts maintained an Overweight rating with a $101 price target, emphasizing enhancements to Pegasystems’ Gen AI Blueprint capabilities. These advancements are expected to modernize legacy technology processes efficiently. Citi analysts also reaffirmed a Buy rating with a $116 price target, expressing confidence in Pegasystems’ Blueprint/GenAI strategy and plans to increase free cash flow significantly. Pegasystems aims to double its free cash flow from 2024 to 2028, reaching $700 million, supported by consistent annual contract value growth. These developments highlight the company’s strategic moves in the AI sector and its commitment to growth and innovation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.