UPDATE: Benchmark Company Reiterates Hold Rating, Lowers PT on Pegasystems

In a report published Friday, Benchmark Company reiterated its Hold rating on Pegasystems PEGA, but lowered its price target to $21.00. Benchmark noted, “Last night, PEGA reported 3Q results below unguided consensus estimates for both revenue and EPS. While not providing explicit forward guidance, management suggested that it will be difficult to hit its initial 2012 targets, so we are lowering our estimates for the rest of the year and 2013. The general operating parameters that sparked our downgrade following 2Q were in evidence in the 3Q miss: slowness in Europe (32% of 3Q sales), continued choppiness in financial services (about 50% of sales), customers reluctant to commit to large deals and a license mix trending towards term licenses, which pressures near-term revenue growth.” Pegasystems closed on Thursday at $20.14.