Canaccord Genuity Maintains a 'Hold' on Pegasystems (PEGA); Looking For A Sign

May 4, 2012 10:33 AM EDT Send to a Friend
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Price: $18.82 --0%

Rating Summary:
    2 Buy, 8 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 15 | New: 28
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Canaccord Genuity maintains a 'Hold' on Pegasystems (NASDAQ: PEGA) price target raised from $32 to $34.

Analyst, Richard Davis, said, "Pegasystems has posted two consecutive solid quarters in a row. The firm has quite reputable BPM and workflow functionality, and management has aggressively hired salespeople to capture a receptive market. However, hiring depresses margins and stretches valuation. That said, we are warming up on this story for two reasons: 1) at some point we have to imagine management finally lets the company capture some operating leverage, which means segment low margins will begin to rise, and 2) margins might not matter if investors decide that fast growth tools companies addressing big markets don’t need earnings (look no further than Splunk and someday to be public ServiceNow). In either scenario, PEGA shares would work."

Raises FY12 EPS estimate to $1.00.
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 $37.22 yesterday.




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