DA Davidson Starts Pegasystems (PEGA) at Neutral, 'Cloud Transition and Anchor Customer Expansion Story'

DA Davidson analyst Gil Luria initiates coverage on Pegasystems (NASDAQ: PEGA) with a Neutral rating and a price target of $48.00.

The analyst comments "We deepen our research on Business Automation with coverage of PEGA, initiating NEUTRAL with a $48 PT. Pegasystems is a long-standing leader in customer engagement and workflow automation with a foundation to support Generative AI contributions to the software portfolio. We like the ongoing Pega Cloud transition, its margin expansion, and resulting contributions to overall gross profits. GTM pivot supports focused resource allocation to anchor customers, net expansion, and FCF margin improvements towards rule of 40 ambitions. We're cautious on financial leverage and Appian lawsuit overhang. Our target values PEGA at 3.0x 2024E EV/ Sales."

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 $47.58 yesterday.

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