
Pegasystems (PEGA) Stock Forecast & Price Target
Pegasystems (PEGA) Analyst Ratings
Bulls say
Pegasystems has demonstrated strong financial growth, with total revenue for Q3 reaching $381.4 million, a 17% increase year-over-year and exceeding consensus estimates. The company's robust backlog (RPO) of $1.8 billion grew 19% year-over-year, with a significant portion attributed to cloud backlog, which constitutes 73% of total backlog, indicating strong demand for its offerings. Furthermore, ongoing improvements in sales coverage and execution, alongside the increasing emphasis on digital transformation among large enterprises, position Pegasystems favorably for continued success.
Bears say
Pegasystems has provided guidance for FY25 revenue that falls short of consensus expectations, implying a growth rate of only 14% year-over-year, which raises concerns about its future performance. Operating margins in Q3 were reported at 15%, slightly below forecasts, indicating potential challenges in cost management. Additionally, various risks, including unfavorable macroeconomic conditions, declining renewal rates, and unpredictable revenues due to a shift in customer preferences towards Pega Cloud, contribute to a negative outlook for the company's financial stability.
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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