Navigating 5 Analyst Ratings For Pegasystems

During the last three months, 5 analysts shared their evaluations of Pegasystems PEGA, revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $63.4, along with a high estimate of $77.00 and a low estimate of $52.00. Witnessing a positive shift, the current average has risen by 10.26% from the previous average price target of $57.50.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils 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 assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Pegasystems compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Pegasystems's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Pegasystems's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Pegasystems analyst ratings.

Get to Know Pegasystems Better

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: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Pegasystems's remarkable performance in 3 months is evident. As of 31 December, 2023, the company achieved an impressive revenue growth rate of 19.61%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 30.08%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Pegasystems's ROE stands out, surpassing industry averages. With an impressive ROE of 54.72%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Pegasystems's ROA excels beyond industry benchmarks, reaching 10.44%. This signifies efficient management of assets and strong financial health.

Debt Management: Pegasystems's debt-to-equity ratio stands notably higher than the industry average, reaching 1.64. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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