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Demystifying Pegasystems: Insights From 9 Analyst Reviews

Author: Benzinga Insights | April 26, 2024 09:00am

Pegasystems (NASDAQ:PEGA) underwent analysis by 9 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 3 3 3 0 0
Last 30D 1 0 0 0 0
1M Ago 1 1 1 0 0
2M Ago 1 0 1 0 0
3M Ago 0 2 1 0 0

In the assessment of 12-month price targets, analysts unveil insights for Pegasystems, presenting an average target of $73.11, a high estimate of $90.00, and a low estimate of $58.00. Marking an increase of 6.26%, the current average surpasses the previous average price target of $68.80.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Pegasystems among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below 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
Blair Abernethy Rosenblatt Maintains Buy $75.00 $75.00
Blair Abernethy Rosenblatt Maintains Buy $75.00 -
Raimo Lenschow Barclays Lowers Equal-Weight $66.00 $68.00
Daniel Ives Wedbush Maintains Outperform $90.00 -
Steven Enders Citigroup Raises Buy $87.00 $86.00
Gil Luria DA Davidson Maintains Neutral $60.00 -
Rishi Jaluria RBC Capital Raises Outperform $77.00 $65.00
Kevin Kumar Goldman Sachs Raises Neutral $70.00 $50.00
Daniel Ives Wedbush Maintains Outperform $58.00 -

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Pegasystems. This insight gives a snapshot of 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: Delving into movements, analysts provide estimates for the future value of Pegasystems's stock. This analysis 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.

Delving into Pegasystems's Background

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.

Pegasystems: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Pegasystems displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 1.44%. This indicates a notable 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 is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -3.67%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Pegasystems's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -3.26%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Pegasystems's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.8%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.48, caution is advised due to increased financial risk.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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

Posted In: PEGA

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