- Pegasystems (PEGA, Financial) reported a remarkable 44% revenue growth in Q1, driven by a 195% surge in subscription licenses.
- Wall Street analysts have set an average price target of $97.63, indicating a 5.94% potential upside.
- Despite the robust performance, GuruFocus estimates suggest a potential downside based on its GF Value metric.
Pegasystems Inc. (NASDAQ: PEGA) has captured investor attention with a dramatic 32% increase in its stock price following impressive Q1 results. The company's fiscal performance was noteworthy, as it reported a remarkable 44% increase in revenue year-over-year. This substantial growth was primarily fueled by a 195% surge in subscription licenses, highlighting the company's effective growth strategy and market demand. Net income reached an impressive $85.42 million, marking a significant turnaround from previous losses. Additionally, Pegasystems' cash flow metrics and backlog demonstrated significant growth, signaling a robust financial health.
Wall Street Analysts' Insights on Pegasystems
Wall Street analysts present mixed but optimistic forecasts for Pegasystems Inc. According to data aggregated from 12 analysts, the average one-year price target is set at $97.63. Estimates vary from a high of $125.00 to a low of $78.12, indicating a 5.94% potential upside from the current price of $92.15. For further detailed estimates, investors can visit the Pegasystems Inc (PEGA, Financial) Forecast page.
The consensus among 14 brokerage firms gives Pegasystems an average recommendation rating of 2.1, interpreted as an "Outperform" status. This rating scale, where 1 signifies a Strong Buy and 5 indicates a Sell, reflects a generally favorable outlook among analysts for the company's performance.
Evaluating Pegasystems Through GuruFocus Metrics
According to GuruFocus' proprietary metrics, the estimated GF Value for Pegasystems Inc over the next year is $51.16. This suggests a potential downside of 44.48% from the current stock price of $92.15. The GF Value is a calculated estimation of the stock's fair trading value, based on its historical trading multiples, past business growth, and projected future performance. For a comprehensive analysis, more data is accessible on the Pegasystems Inc (PEGA, Financial) Summary page.
