Pegasystems price target raised to $60 from $44 at DA Davidson

DA Davidson analyst Gil Luria raised the firm’s price target on Pegasystems to $60 from $44 and keeps a Neutral rating on the shares. The company’s Q4 earnings beat demonstrated impressive GenAI product innovation, cost structure, and free cash flow, though this was partially offset by a 2024 revenue growth outlook which remains in the single digit range, the analyst tells investors in a research note. Pegasystems’ pivot to align closer with anchor enterprise customers and deliver strong automation capabilities with a growing list of GenAI features goes hand-in-hand with a stronger cost-structure and record cash flow, the firm added.