Pegasystems: Reinforces Its AI Bona Fides and Details Financial Progress at Investor Day

We maintain our fair value estimate of $65 per share for no-moat Pegasystems after their analyst day at its PegaWorld iNspire 2024 event. The event highlighted recent developments in artificial intelligence and reinforced the company’s financial progress and targets as it emerged from its model transition to the cloud. We see no change to our long-term thesis and, therefore, see shares as slightly undervalued. We continue to prefer some of our wide-moat names during this period of macroinduced pressure on software demand.