Brokerage sees strong dollar denting Pegasystems profit, cuts PT

Pegasystems

25/10/2022 12:41

** J. P. Morgan reduces PT for enterprise software firm
Pegasystems Inc  PEGA.O  to $55 from $65, implying an upside of
~74% on the stock's last close 
    ** Brokerage says stronger dollar could push FY revenue
forecast revision, and affect Q3 earnings 
    ** "We think the FX environment has become incrementally
worse for Pegasystems, given its high exposure to a number of
currencies" - JPM
    ** Still, in a bright spot, it adds co has not seen any
significant change in customer buying behavior vs prior quarter 
    ** Brokerage revises FY22 EPS estimate to 19 cents from 33
cents and FY23 EPS estimate to 63 cents from 80 cents
    ** Co is due to report its Q3 earnings on Wednesday after
markets close     
    ** Brokerage expects co to post a loss of 38 cents per share
in Q3, wider than Wall Street estimates of a loss of 26 cents
per share, according to Refinitiv data 
    ** Four of 14 brokerages rate the stock 'buy' or higher, 9
'hold' and 1 'sell'; median PT is $40 - Refinitiv IBES 
    ** As of previous close, the stock is down ~72% YTD
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))