Needham Raises Pegasystems (PEGA) Target to $112 on Strong AI Outlook and Revenue Bump

We recently published a list of 10 Trending AI Stocks on Wall Street Right Now. In this article, we are going to take a look at where Pegasystems Inc. (NASDAQ:PEGA) stands against other trending AI stocks on Wall Street right now.

On June 3rd, Needham analyst Jack Andrews raised the price target on Pegasystems Inc. (NASDAQ:PEGA) to $112.00 (from $101.00) while maintaining a “Buy” rating.

Needham’s price target revision reflects Pegasystems’ strategic moves in the AI sector and its positive revenue outlook. Pega made several announcements during its PegaWorld conference and Investor Day. Not only did the company unveil new AI-related products, but it also adjusted its fiscal year 2025 revenue guidance by approximately 6% to $1.7 billion, a year-over-year growth of 13.6%.

Needham Raises Pegasystems (PEGA) Target to $112 on Strong AI Outlook and Revenue Bump

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A revenue beat in the first quarter and increased confidence in the company’s pipeline, despite broader economic challenges, have been attributed as drivers behind the upward revision. Based on this improved outlook, firm analysts also slightly increased their forecasts, also citing Pegasystems’ Blueprint initiative and successful partnerships with Global System Integrators (GSI) as reasons.

Owing to these factors, analysts expect more workloads over the coming years, leading to the rating update.

Pegasystems Inc. (NASDAQ:PEGA) develops, markets, licenses, hosts, and supports enterprise software.

Overall, PEGA ranks 8th on our list of trending AI stocks on Wall Street right now. While we acknowledge the potential of 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 this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.