Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Wedbush adjusted its price target on Pegasystems (NASDAQ:PEGA) to $68.00 from $125.00 while maintaining an Outperform rating on the stock following a 2-for-1 stock split. The company, currently valued at $8.63 billion, has demonstrated robust financial performance with impressive gross profit margins of 75.74% and revenue growth of 14.29% over the last twelve months.
The research firm cited continued confidence in Pegasystems’ ability to drive profitable growth and accelerate free cash flow generation, while noting that the company’s Blueprint product continues to gain traction across new and existing customers.
According to Wedbush’s recent checks, PEGA Cloud is experiencing further acceleration of its conversion cycle heading into the second half of 2025, while taking up a larger portion of total Annual Contract Value (ACV) moving forward.
The firm noted that Pegasystems is focusing on cross-selling and upselling to its existing client base while expanding with new customers, utilizing a more targeted approach with its go-to-market strategy.
Wedbush highlighted that Blueprint is at the forefront of this strategy, leading to increased opportunities within the pipeline to generate stronger recurring revenue, higher margins, and improved free cash flow over time.
In other recent news, Pegasystems Inc . has announced a five-year strategic collaboration with Amazon Web Services (AWS) to integrate AWS’s generative AI services with Pega’s enterprise software solutions. This partnership aims to enhance legacy system modernization and implement AI-powered workflow automation. Additionally, Pegasystems has achieved FedRAMP High Authority to Operate status for its generative AI solutions, enabling government agencies to deploy these tools while meeting federal security standards. On the financial front, Loop Capital raised its price target for Pegasystems to $60, maintaining a Buy rating, citing strong exposure to legacy transformation opportunities. Citi also adjusted its price target to $66 following the company’s recent two-for-one stock split, maintaining a Buy rating with a High Risk designation. DA Davidson increased its price target to $50, retaining a Neutral rating, after discussions on competitive positioning and growth strategies. These developments highlight Pegasystems’ strategic moves in AI integration and its positioning in the financial markets.
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