Pegasystems upgraded to Overweight from Equal Weight at Barclays

Barclays upgraded Pegasystems (PEGA) to Overweight from Equal Weight with a price target of $48, down from $67. While the emergence of generative AI creates “many uncertainties” for the established software space, investors need to “start differentiating better, and take into account the rapidly declining valuation levels,” the analyst tells investors in a research note. The firm says Pegasystems’ software deals with complex business process scenarios in the enterprise, an area that will not be impacted by new generative AI “for a very long time.” It sees Pegasystems’ revenue growth is accelerating from here due to the success of Pega Cloud and Blueprint.