Expert Outlook: Pegasystems Through The Eyes Of 8 Analysts

Throughout the last three months, 8 analysts have evaluated Pegasystems PEGA, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated Pegasystems and provided 12-month price targets. The average target is $103.62, accompanied by a high estimate of $125.00 and a low estimate of $70.00. Witnessing a positive shift, the current average has risen by 1.97% from the previous average price target of $101.62.

Diving into Analyst Ratings: An In-Depth Exploration

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.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|-----------------|--------------------|--------------------| |Devin Au |Keybanc |Lowers |Overweight | $94.00|$118.00 | |Gil Luria |DA Davidson |Lowers |Neutral | $70.00|$90.00 | |Raimo Lenschow |Barclays |Lowers |Equal-Weight | $97.00|$103.00 | |Blair Abernethy |Rosenblatt |Maintains |Buy | $115.00|$115.00 | |Patrick Walravens |JMP Securities |Maintains |Market Outperform| $110.00|$110.00 | |Blair Abernethy |Rosenblatt |Raises |Buy | $115.00|$95.00 | |Raimo Lenschow |Barclays |Raises |Equal-Weight | $103.00|$82.00 | |Daniel Ives |Wedbush |Raises |Outperform | $125.00|$100.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Pegasystems. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Pegasystems compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

For valuable insights into Pegasystems's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using 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 with customer relationship management applications. The company focuses on enterprise-size customers in the financial, insurance, and healthcare industries.

Financial Insights: Pegasystems

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Over the 3M period, Pegasystems showcased positive performance, achieving a revenue growth rate of 3.5% as of 31 December, 2024. This reflects 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 net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 24.26%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Pegasystems's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 22.5% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 7.12%, the company showcases effective utilization of assets.

Debt Management: Pegasystems's debt-to-equity ratio surpasses industry norms, standing at 0.94. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

The Core of Analyst Ratings: What Every Investor Should Know

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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