2023-07-31 07:26:29 ET
Investment firm Wedbush Securities added Pegasystems ( NASDAQ: PEGA ) to its Best Ideas list after the software company reported second-quarter results last week, citing a "compelling" risk-reward for the stock.
"As we have spoken to a handful of our checks recently we believe the Pega growth story and business model turnaround is now in motion with last week's June results a step in the right direction despite the knee jerk negative reaction post print," analyst Dan Ives, who has an outperform rating on Pegaystems, wrote in an investor note.
Ives also explained that Pegasystems ( PEGA ) is being seen as an "under the radar" play on artificial intelligence due to the fact it is automating processes for enterprises to get faster time-to-value, along with faster implementation times and better sales cycles.
"The company continues to increase value with existing customers while Pega’s model stabilizes leading to more recurring revenue and higher gross margins driven by Pega Cloud as the company continues down the path of becoming a Rule of 40 company," Ives said.
Pegaystems ( PEGA ) shares were little changed in pre-market trading on Monday.
More on Pegasystems
- Pegasystems Has AI-Related Upside Potential But Customers Grow Timid
- Pegasystems rises as Wedbush upgrades, citing 'attractive' risk-reward
- Pegasystems pops as Rosenblatt says it trades at 'undue discount'
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Pegasystems added to Wedbush's Best Ideas list after reporting Q2 results