
Pegasystems (PEGA) Stock Forecast & Price Target
Pegasystems (PEGA) Analyst Ratings
Bulls say
Pegasystems has demonstrated robust financial growth, with total revenue reaching $381.4 million in Q3, a 17% year-over-year increase, surpassing both internal estimates and consensus expectations. The company’s backlog (RPO) expanded by 19% year-over-year to $1.8 billion, driven primarily by a 73% contribution from cloud backlog, signaling strong demand for its cloud-based solutions. Additionally, the successful transition to a software subscription licensing model has positively impacted free cash flow margins, which totaled $338 million year to date, reflecting enhanced operational efficiency and growth in recuring revenues.
Bears say
Pegasystems's FY25 revenue guidance of $1,700 million is approximately $7 million below consensus expectations, suggesting a modest 14% year-over-year growth and raising concerns about its future performance. The company's operating margins in Q3 were 15%, falling short of the anticipated 15.5%, which indicates potential difficulties in managing profitability amidst a shifting business model. Additionally, ongoing risks including declining term licenses, macroeconomic fluctuations, and unpredictable revenue patterns contribute to a negative outlook for Pegasystems's stock.
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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