Pegasystems (PEGA) PT Lowered to $95 at Rosenblatt

Rosenblatt analyst Blair Abernathy lowered the price target on Pegasystems (NASDAQ: PEGA) to $95.00 (from $115.00) while maintaining a Buy rating.

The analyst comments "We expect Pega to report its Q1-25 results (ending Mar 31st) on Tuesday, April 22nd after market, with a conference call the following morning at 8am ET. In this note, we preview our unchanged Q1 estimates and are trimming our 12-month target price to $95 (was $115) to reflect comparable multiples and a slightly higher discount rate. We expect healthy Pega Cloud revenue growth of ~18% in FY25. We believe that process automation spending environment in the Q1 period for Pega has remained relatively stable in NAM (~55% of revenue) and continues to be driven by existing customer Digital Transformation programs (many customers remain under penetrated), the uplift from the transition to Pega Cloud (recall that Pega Cloud ACV grew 21% Y/Y (CC) in Q4) and aided by increasing traction with Pega GenAI Blueprint. We are maintaining our Buy rating at current price point."

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