William Blair Reaffirms Pegasystems Inc. (PEGA) on Raised 2025 Outlook

Analysts at William Blair reaffirmed their Outperform rating for Pegasystems Inc. (NASDAQ:PEGA), a software firm with a market capitalization of $8.551 billion. This was after the Las Vegas buzz, during which the company revealed upcoming strategic initiatives and updates.

In its annual user conference, Pegasystems Inc. (NASDAQ:PEGA) raised its outlook for the year, given the enhanced capabilities for its Blueprint offering, citing an increase of $100 million in revenue and $0.84 in EPS. With a gross profit margin of 75% and revenue growth of 14%, the giant is well-positioned to expand its addressable market by effectively executing its strategy. Backing it up with numbers, the management has provided consistent double-digit ACV growth and $700 million in free cash flow over the next three to five years.

Pegasystems Inc. (PEGA): Introduces AI Toolkit to Accelerate Government Digitization

An enthusiastic programmer working on a laptop, surrounded by screens displaying code.

What’s truly impressive is the company’s target customer base, from 1,000 to over 10,000. Anything but ordinary, the growth is associated with the rise of Blueprint, providing a more comprehensive return on investment (ROI) outlook to the customers.

Additionally, the company is working towards achieving a total addressable market (TAM) of more than $150 billion by 2029, reflecting a surge of at least $50 billion from the current levels. There’s no doubt that Pegasystems Inc. (NASDAQ:PEGA) is fully committed to growth and innovation.

Pegasystems Inc. (NASDAQ:PEGA) is a Massachusetts-based global software platform for workflow automation and generative AI-powered solutions for enterprises all around the globe. Founded in 1994,  the cloud architecture of the company is built in a way to empower users to rapidly deploy and easily shift applications for its core priorities.

While we acknowledge the potential of PEGA to grow, 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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