Pegasystems (PEGA) Stock in Focus After Analyst Backs $700M Free Cash Flow Target

Pegasystems Inc. (NASDAQ:PEGA) is one of the 10 AI Stocks in the Spotlight. On June 20, DA Davidson analyst William A. Jellison raised the price target on the stock to $50.00 (from $47.50) while maintaining a “Neutral” rating on the shares.

In a research note, the analyst told investors that it is confident in Pega’s recently announced $700M free cash flow goal for 2028 and believes the required performance from Pega Cloud is ambitious and achievable, which it views “favorably.”

Pegasystems Inc. (NASDAQ:PEGA) develops, markets, licenses, hosts, and supports enterprise software.

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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Disclosure: None.