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Pegasystems Inc - Stock Quote PEGA

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Morningstar's Pegasystems Inc Stock Analysis

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Is it the right time to buy or sell?
Is it the right time to buy or sell?

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Pegasystems Focusing on Larger and Existing Customers as Well as Profitability; FVE Stable at $104

Dan Romanoff, CPA Senior Equity Analyst

Analyst Note

| Dan Romanoff, CPA |

At Pegasystems' investor day, key topics discussed included the current environment, product portfolio, sales strategy, sales partners, and the company's financial evolution according to the rule of 40. Purposefully absent from the event was a discussion of the recent legal decision that went against the company and awarded $2 billion to Appian. We see no changes to our long-term thinking and thus maintain our fair value estimate of $104 per share for this narrow moat name. Should the firm hit its new operating targets for 2025, we see material upside to our estimates. That said, given the selloff in software stocks, including Pegasystems, we view shares as attractive but would prefer ServiceNow and Salesforce at these levels.

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Pegasystems Inc's Company Profile

Business Description

Founded in 1983, Pegasystems provides a suite of solutions for customer engagement and business process automation. The company’s key offering is the Pega Infinity platform, which combines business process automation with customer engagement applications.

One Main Street
Cambridge, MA, 02142
T +1 617 374-9600
Sector Technology
Industry Software - Application
Most Recent Earnings Mar 31, 2022
Fiscal Year End Dec 31, 2022
Stock Type Classic Growth
Employees 6,133