Pegasystems (PEGA) PT Raised to $90 at RBC Capital
RBC Capital analyst Rishi Jaluria raised the price target on Pegasystems (NASDAQ: PEGA) to $90.00 (from $77.00) while maintaining a Outperform rating.
The analyst comments "Pega reported strong Q2 results, as shares traded 14% higher intraday (vs. IGV up 2% as of 2PM ET). Pega Cloud momentum (driven by strong customer adoption of Blueprint) drove accelerating total/cloud ACV growth. Next, profitability continues to stand out, highlighted by a ninth quarter of Pega Cloud gross margin expansion. YTD FCF reached $218M, or 62% of Pega's $350M 2024 target, effectively de-risking full-year guidance. All in, we raise our PT to $90 (from $77) as we like the path to Rule of 40+, a pragmatic GenAI strategy, and a favorable risk/reward."