Progress Software (PRGS) PT Raised to $65 at Citi

Citi analyst Tyler Radke raised the price target on Progress Software (NASDAQ: PRGS) to $65.00 (from $60.00) while maintaining a Neutral rating.

The analyst comments "~2% YoY revenue growth surmounted ~flat YoY expectations (powered by License), underscored by steady, portfolio-wide demand, despite NRR stuck at ~99% levels (F2H23 churn impacts still pressuring TTM calc), while cost discipline + expense timing aided in-Q profitability upside (+3pts/+2pts OPM/FCFM). ShareFile topline contribution crystalizing is a surprising bright spot despite deal yet-to-close ($18-20M for 1-month in F4Q), but comes with hampered FCF (due to deal structure). Low seat-based model exposure (DevTools <10% of biz) and the foundational nature of its developer products (vs IDE-style tools) highlights how PRGS is shielded amid broader headcount volatility and bearish views of GenAI gating seat expansion velocity, while the opportunity to enhance cloud momentum is encouraging (Cloud is <25% mix today but ShareFile will boost this and add cloud expertise). Net, with CitiE topline raised (ShareFile now in #s), and near-term OPM lowered (M&A integration), we remain Neutral, but PT goes to $65."

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