JPMorgan Reiterates ‘Overweight’ Rating on Pegasystems (PEGA)

On June 3, analysts at JPMorgan reiterated an ‘Overweight’ rating on Pegasystems Inc. (NASDAQ:PEGA) and maintained a $101 price target. The bullish stance follows the Investor Day conference in Las Vegas, where the company showcased significant advancement in its Generative AI Blueprint capabilities.

JPMorgan Reiterates ‘Overweight’ Rating on Pegasystems (PEGA)

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The company’s Blueprint facilitates the modernization of workflows while also enhancing the design of data models. In addition, it enhances the creation of product previews across various channels. It also introduced the Pega Agentic Process Fabric, designed to enhance automation by orchestrating AI agents and systems.

JPMorgan analysts are also buoyed by Pegasystems updating its long-term model and revising 2025 revenue guidance upwards. Pegasystems raised its 2025 revenue expectations by $100 million and earnings per share by $0.84. It also reiterated its commitment to increasing its free cash flow, targeting $700 million by 2028.

The company also boasts of an impressive 75.7% gross margin. It has also achieved 14.3% revenue growth over the last 12 months. The robust growth follows significant improvements in the sales organization driven by Blueprint. The analysts have also taken note of Pegasystems efforts to capitalize on legacy modernization opportunities. It has also enhanced its free cash flow generation thanks to new partnerships.

Pegasystems is a technology company that provides software solutions for enterprise AI decision-making and workflow automation. It also offers a platform that helps organizations automate processes, improve customer engagement, and build for change.

While we acknowledge the potential of Pegasystems Inc. (NASDAQ:PEGA) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PEGA and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.