William Blair analyst Jake Roberge has maintained their bullish stance on PEGA stock, giving a Buy rating today.
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Jake Roberge has given his Buy rating due to a combination of factors, primarily focusing on Pegasystems’ impressive second-quarter performance, which surpassed consensus expectations across key metrics. The company reported a notable 16% growth in Annual Contract Value (ACV), exceeding the forecasted 12% and showing an improvement from the previous quarter’s 13%. This growth was significantly driven by the strong adoption of their Blueprint platform, which has become integral to nearly all of the company’s sales engagements, contributing to the acceleration in growth.
Furthermore, Pegasystems is experiencing robust expansion with existing customers, particularly as they transition to Pega Cloud, while also attracting new workloads from other platforms. The introduction of a new partner program is expected to further enhance Blueprint’s adoption by allowing partners to create customized Blueprints, thereby expanding Pega’s reach through new partnerships. Despite some macroeconomic uncertainties, the company has seen limited adverse effects and even noted improved trends compared to the previous quarter. Overall, Roberge believes that Pegasystems’ execution is strengthening, and the continued focus on Blueprint will drive further platform adoption.
In another report released today, Rosenblatt Securities also maintained a Buy rating on the stock with a $61.00 price target.