Update shared on29 Jul 2025
Fair value Increased 25%The notable increase in Pegasystems' consensus price target to $62.68 reflects higher future P/E expectations and improved revenue growth forecasts.
What's in the News
- Pegasystems launched Pega Cloud on Google Cloud in Saudi Arabia, supporting data residency for local clients and aligning with Vision 2030, expanding its presence in a rapidly growing ICT market.
- The company repurchased 3.15 million shares for $133.2 million, completing 13.88% of shares under its longstanding buyback program.
- Pegasystems entered a five-year strategic collaboration with AWS, integrating generative AI services (Amazon Bedrock, AWS Transform) to accelerate client legacy modernization and enhance Pega's cloud migration offerings.
- Achieved FedRAMP High Authority to Operate for generative AI solutions on Pega Cloud for Government, enabling secure deployment for U.S. federal agencies with strengthened compliance and scalability.
- Announced a two-for-one stock split and increased authorized shares from 200 million to 400 million; post-split quarterly dividend set at $0.03 per share, making the stock more accessible.
- Multiple index inclusions: S&P 400, S&P 1000, S&P Composite 1500, and various Russell Value indices, increasing visibility among institutional investors.
- Announced significant advancements in agentic AI and automation across core platforms (Pega Blueprint, Pega Infinity, Pega Agentic Process Fabric), aiming to accelerate digital transformations, improve workflow automation, and enable integration of partner and client expertise.
- Expanded partnership with Cognizant to drive cloud transformation and AI-powered modernization using Pega Blueprint capabilities.
- Introduced Pega Predictable AI Agents, providing enterprises with greater control, transparency, and reliability when deploying AI in business-critical workflows and processes.
Valuation Changes
Summary of Valuation Changes for Pegasystems
- The Consensus Analyst Price Target has significantly risen from $50.33 to $62.68.
- The Future P/E for Pegasystems has significantly risen from 37.39x to 46.08x.
- The Consensus Revenue Growth forecasts for Pegasystems has significantly risen from 3.8% per annum to 4.2% per annum.
Disclaimer
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