Progress Software (PRGS): Revisiting Valuation After Launching Agentic RAG on AWS Marketplace

Progress Software (PRGS) just broadened its AI reach by listing its no-code Agentic RAG platform in AWS Marketplace, giving AWS customers a simpler path to deploy generative AI on their own data.

See our latest analysis for Progress Software.

Even with the buzz around Agentic RAG on AWS Marketplace, Progress Software's 1 day share price return of 2 percent and 7 day share price return of 3.83 percent come after a much tougher stretch, with its year to date share price return down sharply and 1 year total shareholder return also negative. This suggests sentiment is stabilizing rather than surging.

If this kind of AI driven story has your attention, it could be a good moment to see what else is setting up interestingly across high growth tech and AI stocks.

With shares still down more than 30 percent year to date but trading at a steep discount to analyst targets and intrinsic value estimates, is Progress Software a quietly undervalued AI play, or is the market already baking in its next growth leg?

Most Popular Narrative Narrative: 38.9% Undervalued

With Progress Software last closing at $42.79 and the most followed narrative pointing to fair value near $70, the gap rests on some punchy growth assumptions.

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 what kind of earnings surge and margin rebuild this story is banking on, and which future profit multiple has to hold up for that price? The full narrative unpacks the exact growth runway, profitability shift, and valuation gear change that underpin this upbeat fair value.

Result: Fair Value of $70 (UNDERVALUED)

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

However, the integration of ShareFile and continued SaaS deal making could still backfire if costs spike or acquisitions fail to deliver expected margins.

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

Build Your Own Progress Software Narrative

If you want to dig into the numbers yourself and shape a story that fits your view, you can build a complete narrative in under three 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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