Progress Software (PRGS): Assessing Valuation After AWS Launch of Agentic RAG No-Code AI Platform

Progress Software (PRGS) has made its SaaS Agentic RAG platform available through AWS Marketplace, allowing AWS customers to more easily access and use no-code generative AI tools for unstructured, multilingual data.

See our latest analysis for Progress Software.

Shares of Progress Software have seen a sharp pullback this year, with a year-to-date share price return of -37.23 percent and a one-year total shareholder return of -41.88 percent. The recent momentum, sparked by innovations like the Agentic RAG platform’s AWS Marketplace launch, has helped ease some of the slide in the short term, but the stock remains well below its earlier highs.

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With the stock trading at a steep discount to recent price targets and new AI products entering the market, investors must consider whether Progress Software is an underappreciated value or if the market already anticipates future growth.

Most Popular Narrative: 42% Undervalued

With Progress Software shares trading at $40.62 and the narrative’s fair value pinned at $70, the gap between market price and expectations is drawing interest. The stage is set for a debate on whether this discount fairly reflects the company’s future earnings potential.

The successful integration of ShareFile has significantly boosted ARR, revenue, and expense savings, which could indicate strong future revenue growth and improved net margins due to operational efficiencies. The strategic focus on SaaS acquisitions, exemplified by ShareFile, allows Progress Software to potentially increase recurring revenue, enhancing revenue predictability and stability over time.

Read the complete narrative.

Curious how analysts landed on this high fair value? The heart of the narrative hinges on rapid earnings expansion and a financial turnaround play. Want to know what bold targets and margin moves drove the valuation higher? Discover the financial forecasts propelling this bullish outlook.

Result: Fair Value of $70 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, challenges such as integrating acquisitions and shifting to cloud SaaS could pressure profits if costs or execution fall short of expectations.

Find out about the key risks to this Progress Software narrative.

Build Your Own Progress Software Narrative

If you have your own take or want to dive deeper into the data firsthand, you can craft a personalized Progress Software narrative in just minutes. Do it your way

A great starting point for your Progress Software research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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