Deep Dive Into Pegasystems Stock: Analyst Perspectives (4 Ratings)

Throughout the last three months, 4 analysts have evaluated Pegasystems PEGA, offering a diverse set of opinions from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts have recently evaluated Pegasystems and provided 12-month price targets. The average target is $49.5, accompanied by a high estimate of $57.00 and a low estimate of $44.00. This current average has decreased by 10.54% from the previous average price target of $55.33.

Breaking Down Analyst Ratings: A Detailed Examination

The standing of Pegasystems among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Pegasystems. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Pegasystems compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Pegasystems's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Pegasystems's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Pegasystems analyst ratings.

Unveiling the Story Behind Pegasystems

Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process management. The company's key offering is the Pega Infinity platform, which combines business process management, or BPM, with customer relationship management, or CRM, applications. The company focuses on enterprise-size customers, specifically within the financial, insurance, and healthcare verticals.

Pegasystems's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Pegasystems's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 23.61%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Pegasystems's net margin is impressive, surpassing industry averages. With a net margin of -2.18%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Pegasystems's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of -4.65%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Pegasystems's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of -0.6%, the company showcases efficient use of assets and strong financial health.

Debt Management: Pegasystems's debt-to-equity ratio is notably higher than the industry average. With a ratio of 3.48, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.