Benchmark Analyst Gives Up on Pegasystems (PEGA), Downgrades to Hold

August 10, 2012 7:40 AM EDT
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Price: $37.90 +0.26%

Rating Summary:
    4 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 22 | New: 54
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Benchmark downgraded Pegasystems (NASDAQ: PEGA) from Buy to Hold and lowered their price target to $23.00 following the company’s disappointed earning report yesterday.

Analyst Mark W. Schappel lamented over what he views as increasingly obvious headwinds.

“We should have seen it coming. All the signs were there. PEGA is highly exposed to the financial services sector where companies have reported difficulty closing deals; it’s vulnerable to deteriorating economic conditions in Europe; it’s overly exposed on the large deal front; and it has a license mix that has been trending toward term licenses, which pressures near-term revenue.”

“While we’re still believers in the BPM opportunity and PEGA’s leading role in the sector, we’re finding it increasingly difficult to defend the stock following two earnings shortfalls during the past four quarters, hence our downgrade,” he said.

For an analyst ratings summary and ratings history on Pegasystems click here. For more ratings news on Pegasystems click here.

Shares of Pegasystems closed at $27.02 yesterday.

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