Should I Buy PRGS? PRGS 2026 Analysis

Should You Buy Progress Software Corp (PRGS) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

40.050

1 Day change

0.84%

52 Week Range

65.500

Analysis Updated At

2026/01/26

Progress Software Corp (PRGS) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and recent earnings beat provide a solid foundation for long-term growth. While technical indicators show mixed signals, the overall outlook remains favorable for a long-term investment.

Technical Analysis

The MACD is positive and expanding, indicating bullish momentum. However, RSI is neutral at 55.59, and the moving averages show a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 42.506, with key resistance at 45.834 and support at 39.179. Short-term technicals are mixed, but the stock has potential for recovery.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

The high option volume put-call ratio suggests bearish short-term sentiment, but open interest put-call ratio indicates a more balanced outlook. Implied volatility is high at 51.89 with an 89.2% IV percentile, suggesting elevated market expectations.

Technical Summary

Sell

Buy

Positive Catalysts

Strong Q4 financial performance with 18% revenue growth and a 2144.55% YoY increase in net income.
Positive analyst sentiment with Citi raising the price target to $60 post-earnings.
Recent earnings beat and strong 2026 outlook driving investor confidence.

Neutral/Negative Catalysts

Bearish moving averages and mixed technical indicators.
High implied volatility and bearish short-term options sentiment.
Jefferies' cautious outlook on AI monetization and reduced price target to $45.

Financial Performance

In Q4 2025, Progress Software reported a 17.54% YoY revenue increase to $252.67M, a 2144.55% YoY net income increase to $25.75M, and an EPS increase of 1866.67% to $0.59. However, gross margin dropped by 4.59% YoY to 71.3%. Overall, the financials indicate strong growth momentum.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts are generally positive on PRGS. Citi recently raised its price target to $60 and maintained a Buy rating, citing strong earnings and cash flow momentum. Jefferies, however, lowered its target to $45, expressing concerns about AI monetization and sector valuation. The consensus leans towards a favorable long-term outlook.

1 Analyst Rating

Wall Street analysts forecast PRGS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PRGS is 45 USD with a low forecast of 45 USD and a high forecast of 45 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

0 Buy

1 Hold

0 Sell

Hold

Current: 39.710

Low

Averages

High

Current: 39.710

Low

Averages

High

Citi

Fatima Boolani

Buy

maintain

$54 -> $60

AI Analysis

2026-01-22

Reason

Citi

Fatima Boolani

Price Target

$54 -> $60

AI Analysis

2026-01-22

maintain

Buy

Reason

Citi analyst Fatima Boolani raised the firm's price target on Progress Software to $60 from $54 and keeps a Buy rating on the shares post the Q4 report. The company has momentum heading into 2026 artery reporting strong earnings and cash flow, the analyst tells investors in a research note.

Citi

Buy

downgrade

$57 -> $54

2026-01-16

Reason

Citi

Price Target

$57 -> $54

2026-01-16

downgrade

Buy

Reason

Citi lowered the firm's price target on Progress Software to $54 from $57 and keeps a Buy rating on the shares. The firm adjusted targets in the infrastructure software group as part of its 2026 outlook. It sees the sector's 2025 momentum carrying into the new year.

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PRGS Should I Buy

PRGS Should I Buy

Should You Buy Progress Software Corp (PRGS) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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