Summary:
- Pegasystems Inc. (PEGA, Financial) experiences a strong start to 2025 with remarkable ACV growth and strategic share repurchases.
- Wall Street analysts set a positive price target, suggesting a potential upside.
- Despite an "Outperform" status, GuruFocus estimates a significant downside based on GF Value calculations.
Pegasystems Inc. (PEGA) reported a promising start to 2025, showcasing substantial growth in its annual contract value (ACV), a crucial metric for assessing its revenue potential and market strength. In the first quarter alone, the ACV surged by $74 million. The Pega Cloud segment was a standout performer, achieving a 23% increase in ACV to reach $700 million. Moreover, the company generated an impressive $202 million in free cash flow, a vital indicator of financial health. Demonstrating strategic financial management, Pegasystems also repurchased 1.5 million shares for $120 million. The company is targeting a 12% ACV growth for the year, fueled by robust Pega Cloud performance and ongoing investments in cutting-edge AI solutions like Pega GenAI Blueprint.
Wall Street Analysts Forecast
According to one-year price targets provided by 12 analysts, the average target price for Pegasystems Inc (PEGA, Financial) stands at $97.63, with projections ranging from a high of $125.00 to a low of $78.12. This average target suggests a potential upside of 10.10% from the current price of $88.67. For further insights into these projections, visit the Pegasystems Inc (PEGA) Forecast page.
The consensus from 14 brokerage firms rates Pegasystems Inc's (PEGA, Financial) stock with an average brokerage recommendation of 2.1, indicating an "Outperform" status. This rating leverages a scale from 1 to 5, where 1 indicates a Strong Buy and 5 represents a Sell.
Moreover, based on GuruFocus estimates, the projected GF Value for Pegasystems Inc (PEGA, Financial) in one year is $51.16. This suggests a considerable downside of 42.3% from the current price of $88.67. The GF Value is GuruFocus' assessment of the stock's fair value, calculated using historical trading multiples, past business growth, and future performance projections. For more in-depth evaluation, visit the Pegasystems Inc (PEGA) Summary page.
