
Pegasystems (PEGA) Stock Forecast & Price Target
Pegasystems (PEGA) Analyst Ratings
Bulls say
Pegasystems demonstrated strong financial performance with a reported backlog (RPO) growth of 11% year-over-year, reaching $1.62 billion. The fourth quarter exhibited robust Cloud revenue of $149.6 million, marking a 24% organic increase, thereby contributing approximately 30% to total revenue of $490.8 million, which was above expectations. Additionally, operating cash flow and free cash flow showed significant increases, rising to $346 million and $338 million respectively, highlighting strong operational efficiency and profitability within the company.
Bears say
Pegasystems is experiencing a downward revision in its financial projections, with FY25 Total ACV growth expected at 12%, slightly below previous estimates, and a reduced outlook on operating margins primarily due to cloud transition costs and increased sales and marketing expenses. Several risks threaten the company's financial stability, including unfavorable macroeconomic conditions, potential declines in recurring revenue, and competitive pricing pressures, alongside a slow trajectory toward its 2023 financial targets and ongoing legal challenges. The company's performance in Q4 indicates a slight revenue decline year-over-year and a lower-than-expected growth rate in its Cloud ACV, highlighting concerns over its ability to maintain momentum in a changing market landscape.
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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