Update shared on 29 Nov 2025
The analyst consensus price target for Pegasystems increased significantly, rising from $65 to $85. Analysts cite strong cloud transition momentum, solid Q3 results, and expanding opportunities in modernizing legacy applications as key drivers for their upward revisions.
Analyst Commentary
Bullish Takeaways- Bullish analysts have highlighted the company's robust Q3 performance, with all key financial metrics surpassing consensus estimates and supporting higher valuation targets.
- Momentum in cloud migration is cited as a major growth driver. Accelerating cloud contract volume growth is contributing significantly to improved estimates.
- Ongoing investments in Blueprint and new partnerships are seen as catalysts for continued execution strength and future revenue expansion.
- There is a belief that Pegasystems’ opportunity to modernize legacy applications remains substantial. This is seen as providing further upside potential to long-term growth expectations.
What's in the News
- Pega Blueprint Inc. introduced enhanced privacy and security features for its workflow design agent, enabling regional data residency and client-level file storage for organizations needing strict data compliance. (Key Developments)
- Pegasystems announced the general availability of Pega Infinity '25, a transformation platform that leverages AI agents for dependable and auditable automation and faster legacy system modernization. (Key Developments)
- The company completed a significant share buyback, repurchasing 2,675,000 shares for $142.2 million and bringing the total to nearly 25 million shares since the program's inception. (Key Developments)
- Pega Smart Investigate Agentic Automation was launched, supporting the latest SWIFT ISO 20022 standards and offering embedded AI for faster and more efficient payment exceptions and investigations in financial institutions. (Key Developments)
Valuation Changes
- Fair Value estimate remains unchanged at $73.09.
- Discount Rate edged higher, increasing slightly from 8.42 percent to 8.43 percent.
- Revenue Growth forecast is stable, holding at 3.40 percent.
- Net Profit Margin expectation is unchanged at 16.62 percent.
- Future P/E ratio decreased modestly, moving from 48.00x to 47.72x.
Disclaimer
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