UPDATE: Wedbush Securities Initiates Coverage on Pegasystems with Neutral Rating, $26 PT

In a report published Friday, Wedbush Securities initiated coverage on Pegasystems PEGA with a Neutral rating and $26.00 price target. Wedbush noted, “We are initiating coverage of PEGA with a NEUTRAL rating and 12-month target price of $26, about 9% above current levels. From an investment perspective, we think PEGA's differentiation and technology leadership in the business process management (BPM) market and its track record of 20%+ annual top-line growth since FY06 are significant positives. However, although PEGA shares may have long-term appreciation potential, we see too many uncertainties right now about PEGA's growth and margin expansion potential to recommend accumulating shares.” Pegasystems closed on Thursday at $23.60.