
Pegasystems (PEGA) Stock Forecast & Price Target
Pegasystems (PEGA) Analyst Ratings
Bulls say
Pegasystems reported an 11% year-over-year growth in backlog, reaching $1.62 billion, indicating strong demand for its solutions. The company's total revenue for Q4 was $490.8 million, which exceeded estimates and reflected a 3% year-over-year increase primarily driven by a substantial 351% sequential growth in term licenses revenue. Additionally, operating cash flow and free cash flow showed significant improvement, increasing from $218 million to $346 million and from $201 million to $338 million, respectively, highlighting the company's robust financial health and operational efficiency.
Bears say
Pegasystems is expected to experience a modest total Annual Contract Value (ACV) growth of 12% for FY25, which reflects a decline from previous expectations, alongside an anticipated decrease in operating margins due to ongoing cloud transitions and increased selling and marketing expenditures. Furthermore, significant risks loom over the company's future, including potential declines in renewal rates of recurring revenue, challenges in margin management, and variability in ACV growth rates amid its ongoing model shift, all of which could hinder financial performance. Lastly, despite a reported 36.6% operating margin in Q4, the company forecasts a decline in total revenue for the quarter and is trading at a valuation multiple that remains lower than comparable firms in the market.
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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