
Pegasystems (PEGA) Stock Forecast & Price Target
Pegasystems (PEGA) Analyst Ratings
Bulls say
Pegasystems has demonstrated a solid financial performance, highlighted by an 11% year-over-year growth in backlog (RPO) to $1.62 billion and a total revenue of $490.8 million, surpassing estimates. The company reported a significant increase in Q4 Cloud revenue, reaching $149.6 million—up 24% organically—marking approximately 30% of total revenue, which reflects the ongoing transition of customers from on-premise solutions to cloud offerings. Furthermore, the company has shown robust cash flow performance, with operating cash flow increasing from $218 million in Q4 FY23 to $346 million in Q4 FY24, alongside a notable rise in free cash flow, reinforcing a positive outlook on the company's financial health and growth trajectory.
Bears say
The negative outlook on Pegasystems's stock is primarily driven by reduced expectations for fiscal year 2025, with a projected Total Annual Contract Value (ACV) growth of only 12%, which is below prior forecasts. Additionally, concerns regarding operating margin decline due to cloud transition costs and rising sales and marketing expenses, compounded by various risks including unfavorable macroeconomic conditions and a potential decrease in renewal rates, further exacerbate the company's financial instability. Furthermore, recent financial performance reflects missed revenue expectations and a significant slowdown in cloud ACV growth, indicating challenges in maintaining competitiveness and achieving desired operational targets.
This aggregate rating is based on analysts' research of Pegasystems and is not a guaranteed prediction by Public.com or investment advice.
Pegasystems (PEGA) Analyst Forecast & Price Prediction
Start investing in Pegasystems (PEGA)
Order type
Buy in
Order amount
Est. shares
0 shares