William Blair analyst Jake Roberge has maintained their neutral stance on PEGA stock, giving a Hold rating today.
Jake Roberge has given his Hold rating due to a combination of factors surrounding Pegasystems’ recent performance and future outlook. Despite Pegasystems delivering solid quarterly results, including a record free cash flow that significantly exceeded consensus estimates, there were areas that fell short. The revenue and Annual Contract Value (ACV) growth were slightly below expectations, which can be attributed to a challenging comparison from the previous year’s strong first quarter. However, Roberge notes that the company’s management is optimistic about accelerating ACV growth as the year progresses and comparisons normalize.
Furthermore, Roberge highlights the promising demand for Pegasystems’ new GenAI Blueprint solution, which is gaining rapid adoption and has the potential to enhance the development process for new applications, providing a boost to the company’s growth trajectory. The migration to Pega Cloud is also accelerating, indicating an increased maturity in Pegasystems’ cloud offerings and growing interest in its AI solutions. While these factors contribute to a positive outlook, the hold rating suggests that Roberge is taking a cautious stance, likely waiting for more evidence of sustained growth and consistent execution on the company’s strategic initiatives before considering a more bullish rating.
According to TipRanks, Roberge is an analyst with an average return of -2.3% and a 37.04% success rate. Roberge covers the Technology sector, focusing on stocks such as Mitek Systems, Adobe, and Appian.
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Pegasystems (PEGA) Company Description:
Pegasystems, Inc. engages in the development, market, license, and support of software, which allows organizations to build, deploy, and change enterprise applications. The company was founded by Alan Trefler in 1983 and is headquartered in Cambridge, MA.
