Progress Software

Cloud Migration Risks Will Erode Margins Yet Prompt Renewal

AnalystLowTarget

Not Invested

Community Contributor

Published

20 Jul 25

Updated

15 Dec 25

Views

n/a

AnalystLowTarget's Fair Value

n/a

-34.2%

-1.3%

-34.2%

-1.3%

You can edit this narrative until Dec 16 5:05 PM. Then, changes will post as Updates.

Author's Valuation

US$5014.1% undervalued

AnalystLowTarget Fair Value

Narrative

Updates1

Shared on 15 Dec 25

Fair value Decreased 12%

PRGS: AI Demand And M&A Execution Will Drive Margin Expansion Ahead

Analysts have trimmed their blended price target on Progress Software to $50 from $57, reflecting expectations for slower top-line growth, despite strong execution, improving margins, and continued benefits from acquisitions and AI-driven demand. Analyst Commentary Analyst commentary on Progress Software reflects a mixed backdrop, with strong recent execution and margin performance counterbalanced by concerns around the sustainability of growth and the stock's risk reward profile.

AnalystLowTarget Fair Value

US$50

14.1% undervalued

Future estimation in

Growth p.a.

Decrease

Increase

Current revenue growth rate

1.51%

Software revenue growth rate

1.17%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

10.69%

Calculation

US$190.12m

Earnings '28

14.59x

PE Ratio '28

US$2.77b

Market Cap '28

US$2.77b

Market Cap '28

41.55m

No. shares '28

US$66.76

Share Price '28

US$66.76 Share Price '28

Discounted to 2025 @ 10.61% p.a.

US$49.34

Fair Value '25