2023-03-09 08:36:19 ET
- Investment firm William Blair started coverage on Pegaystems ( NASDAQ: PEGA ) on Thursday, noting the customer relationship management software company has a "competitive moat" in the enterprise and customer engagement markets.
- Analyst Jake Roberge started Pegaystems ( PEGA ) with a market perform rating, pointing out the Cambridge, Massachusetts-based company "remains well-positioned to capitalize on digital transformation themes and shifting consumer preferences toward digital interactions."
- Delving deeper, Roberge said that Pegaystems' ( PEGA ) management is looking to adhere to the Rule of 40 by the end of 2024, despite worries about the company's subscription transition.
- The analyst also noted that the company's total addressable market is "significant" (the company estimates it at $65B but it could be as high as $77B) as 750M net new apps could be built by 2025 - according to IDC - with the majority of them built on no-code or low-code platforms like those from Pegaystems ( PEGA ).
- Pegasystems ( PEGA ) shares fell 4.4% in premarket trading on Thursday.
- Last month, Pegasystems ( PEGA ) reported stronger-than-expected fourth quarter results and issued an upbeat earnings forecast for 2023 .
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Pegasystems slips as William Blair starts coverage, says it has 'competitive moat'