
Pegasystems (PEGA) Stock Forecast & Price Target
Pegasystems (PEGA) Analyst Ratings
Bulls say
Pegasystems demonstrated strong financial performance, highlighted by an 11% year-over-year growth in backlog (RPO) to $1.62 billion and a notable 24% increase in Q4 Cloud revenue, amounting to $149.6 million. The company achieved total revenue of $490.8 million, surpassing estimates and reflecting significant growth in term licenses revenue, which rose 351% sequentially. Additionally, operating cash flow and free cash flow both saw substantial increases, indicating a robust financial foundation as the adoption of Pega Cloud continues to drive future growth prospects.
Bears say
The financial analyst notes a negative outlook on Pegasystems's stock due to its forecasted Total ACV growth of 12% for FY25, which is marginally below previous expectations, alongside a declining operating margin outlook attributed to cloud transitions and increased sales and marketing costs. Additionally, numerous risks threaten the company’s stability, including unfavorable macroeconomic conditions, a potential decline in renewal rates for recurring revenue, variability in ACV growth, and a slower-than-anticipated trajectory toward achieving 2023 financial targets. Furthermore, the company is experiencing a significant decrease in cloud ACV growth and is trading at a valuation below its comparables, indicating potential long-term challenges.
This aggregate rating is based on analysts' research of Pegasystems and is not a guaranteed prediction by Public.com or investment advice.
Pegasystems (PEGA) Analyst Forecast & Price Prediction
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