Stock Price & Analysis

Based on the analysis of PEGA's recent developments and market trends, it is recommended to sell PEGA stock due to ongoing legal risks and uncertain market conditions. The stock's current technical indicators and legal challenges suggest a cautious approach.

Price Prediction for PEGA Stock in 2025

PEGA stock is predicted to reach $125 by 2025, driven by strong AI-driven growth and analyst upgrades. Analysts have raised price targets, citing Pegasystems' leadership in AI and automation, with Wedbush setting a $125 target. However, risks include ongoing legal disputes with Appian.

The S1 support level for PEGA Stock is $69.17 ,The R1 resistant level for PEGA Stock is $78.52.

As of the end of day on 2025-03-14, the price of PEGA Stock was $71.95.

The target price for PEGA Stock according to analyst rating is 112.00, with the highest price target at 125.00 and the lowest at 90.00. Analysts have a Strong Buy rating on PEGA Stock overall.

The market cap of PEGA is $6.2B.

Analysis and Insights

PEGA's valuation metrics suggest it may be overvalued. The PE ratio of 49.84 (Q3) and 84.22 (Q4) indicates a high price relative to earnings. The EV/EBITDA of 23.91 (Q3) and 32.08 (Q4) is also elevated, pointing to a premium valuation. The PS ratio of 4.31 (Q3) and 5.63 (Q4) is above average, and the PB ratio of 13.26 (Q3) and 13.71 (Q4) is significantly high, further suggesting overvaluation. The low dividend yield of 0.16% (Q3) and 0.13% (Q4) adds to concerns about the stock's attractiveness.

Analysts have mixed opinions, with some maintaining a "Buy" rating but others lowering price targets, indicating cautious sentiment. The ongoing legal battle with Appian, which could result in a $2.036 billion judgment, introduces risk and uncertainty. While PEGA's new AI tool launch is positive, it may already be reflected in the stock price, contributing to its high valuation.

Conclusion

PEGA appears overvalued based on its high valuation metrics and legal risks. Investors should exercise caution and assess whether growth prospects justify the current price.

Pegasystems Inc. develops, markets, licenses, hosts and supports enterprise software that helps organizations build agility into their business so they can adapt to change. Its Pega Infinity is a software portfolio, which helps connect enterprises to their customers in real-time across channels. Its applications and platform intersect with and encompass several software markets, including Customer Relationship Management; Digital Process Automation, including Business Process Management, Workflow, and Dynamic Case Management; Low-code application development platforms, including Multi-experience Development Platforms; Robotic Process Automation; Business Rules Management Systems; Decision Management, including predictive and adaptive analytics, and the Vertical-Specific Software market of industry solutions and packaged applications. The Company offers various services and support through its Global Client Success, Global Service Assurance and Client Support, and Pega Academy groups.

Price Prediction for PEGA Stock by 2030

Based on current trends and analysis, PEGA stock is predicted to reach $200 by 2030. This forecast is driven by the company's strong position in AI-powered enterprise solutions and its recent launch of the Pega Customer Engagement Blueprint, which enhances customer engagement through generative AI. Analysts have set price targets ranging from $118 to $125, reflecting confidence in the company's growth potential. However, risks such as ongoing legal battles with Appian could impact short-term performance.

PEGA has a total of 5406 employees.