Evaluating Pegasystems: Insights From 4 Financial Analysts

Pegasystems PEGA underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $64.25, a high estimate of $77.00, and a low estimate of $52.00. This upward trend is evident, with the current average reflecting a 11.74% increase from the previous average price target of $57.50.

Diving into Analyst Ratings: An In-Depth Exploration

In examining recent analyst actions, we gain insights into how financial experts perceive Pegasystems. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Pegasystems. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Pegasystems compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Pegasystems's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Pegasystems's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Pegasystems analyst ratings.

Unveiling the Story Behind Pegasystems

Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process management. The company's key offering is the Pega Infinity platform, which combines business process management, or BPM, with customer relationship management, or CRM, applications. The company focuses on enterprise-size customers, specifically within the financial, insurance, and healthcare verticals.

Unraveling the Financial Story of Pegasystems

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Pegasystems's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 19.61%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Pegasystems's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 30.08%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Pegasystems's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 54.72%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Pegasystems's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 10.44% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.64, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.