Pegasystems (PEGA) Delivers Another Strong Quarter – Is This AI Stock Back on Track?

Pegasystems Inc. (NASDAQ:PEGA) is one of the Trending AI Stocks on Wall StreetOn July 24, Barclays raised the firm’s price target on the stock to $58 from $50 and kept an “Equal Weight” rating on the shares.

The firm described Pega’s recent quarter as “another quarter of above-consensus growth.” Pega reported a remarkable revenue growth of 9.5% and maintained a strong gross margin of 75.5%, marking the second consecutive quarter of above-consensus performance.

The firm quoted that Q2 was “almost better compared to Q1 when looking at the quality of the beat.” Moreover, it believes that it is getting clear that the genAI Blueprint offering is “starting to work well as a demand generation tool.”

Pegasystems (PEGA) Delivers Another Strong Quarter – Is This AI Stock Back on Track?

A close-up of an investor pointing to a chart featured on a projector, conveying a message of growth.

Nevertheless, the rating is kept at Equal Weight as the firm looks more into the ultimate total addressable market and also at Appian’s lawsuit.

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

While we acknowledge the risk and potential of PEGA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PEGA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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