Loop Capital has revised its price target for Pegasystems (PEGA, Financial), bringing it down from $115 to $85 ahead of the company's upcoming quarterly earnings report. Despite the lowered target, the firm maintains a Buy rating on the stock.
The anticipated performance for Pegasystems in the first quarter is expected to be satisfactory. However, concerns have been raised regarding the visibility of the company's free cash flow growth in the latter half of the year. This has prompted the adjustment in the price target.
On a positive note, Pegasystems stands to benefit from its GenAI Blueprint solution, which could offer additional opportunities for growth. Nevertheless, the less predictable cash flow trajectory appears to be a key factor influencing Loop Capital's revised outlook on the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for Pegasystems Inc (PEGA, Financial) is $102.63 with a high estimate of $125.00 and a low estimate of $78.12. The average target implies an upside of 50.54% from the current price of $68.17. More detailed estimate data can be found on the Pegasystems Inc (PEGA) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Pegasystems Inc's (PEGA, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Pegasystems Inc (PEGA, Financial) in one year is $51.16, suggesting a downside of 24.95% from the current price of $68.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Pegasystems Inc (PEGA) Summary page.
