Wedbush Lowers PT on Pegasystems Inc. (PEGA) Stock

Pegasystems Inc. (NASDAQ:PEGA) is one of the Best Automation Stocks to Buy According to Analysts.

On February 12, Wedbush reduced its price objective on the company’s stock to $60 from $75 and maintained an “Outperform” rating, as reported by The Fly. The firm noted Pegasystems Inc. (NASDAQ:PEGA)’s Q4 2025 results, in which it surpassed top and bottom-line estimates owing to ACV growth. Furthermore, the company offered healthy FY 2026 guidance, which was ahead of Street estimates, with Blueprint expected to be a key growth factor in 2026.

In a different release, the company released its FY 2025 financial results, with an increase in Pega Cloud revenue in 2025, mainly driven by expanded adoption by the existing clients. Pegasystems Inc. (NASDAQ:PEGA) saw its Pega Cloud revenue reach $695.9 million in FY 2025, reflecting a rise of 25% YoY.

For FY 2026, Pegasystems Inc. (NASDAQ:PEGA) expects total ACV growth of 15%, and total revenue of $2 billion, reflecting an increase of ~15%. Also, it expects its FCF to reach $575 million, up by 17% YoY.

Pegasystems Inc. (NASDAQ:PEGA) is engaged in developing, marketing, licensing, hosting, and supporting enterprise software. The company provides a leading AI-powered platform for enterprise transformation. Its technology helps automate workflows, personalize customer experiences, and modernize legacy systems.

While we acknowledge the potential of PEGA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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