Wedbush Morgan Initiates Outperform Rating on Pegasystems Inc. (PEGA)

Wedbush Morgan is out with a mid-day research report, where it initiated an Outperform rating on shares of Pegasystems Inc. PEGA; it has a $40.00 price target on the stock. The Wedbush analysts said that PEGA is the leading technology vendor in the Business Process Management space and that their high growth and excellent execution strategy warrants a higher premium. They added, “PEGA’s BPM software enables companies to cut millions of dollars in IT and support resources that are commonly needed to support legacy CRM processes across sales, service and operations. Further, its solution frameworks allow business and IT to more easily develop new apps.” They also said the company, “has grown organic product revenue by 42% in each of the last two years, well above the long-term market growth of 13%+. Its ability to grow revenue at such a high rate in a down economy has been driven by its quick ROIs delivered through its relatively new modular deployment capabilities.” The Wedbush Morgan analysts also believe that the recent sell off in the shares was unwarranted and that their channel checks “suggest deal activity rebounded in Q2.” They added that they “expect meaningful acceleration in growth” of deal activity.