15 AI News Investors Should Not Miss

13. Pegasystems Inc. (NASDAQ:PEGA)

Number of Hedge Fund Holders: 27

Pegasystems Inc. (NASDAQ:PEGA) is a Massachusetts-based American software and enterprise transformation company. As an AI-powered platform, Pegasystems helps organizations personalize engagement, automate services, and overall streamline their business operations. Their “enterprise AI decisioning and workflow automation platform” delivers business-transforming value. One of its newest offerings is the Pega GenAI Blueprint, the company’s latest SaaS capability incorporating generative AI into the ideation phase of the initial design stage for application development.

Pegasystems Inc. (NASDAQ:PEGA) has recently been named by Citi as one of its “top picks” on the back of an “underappreciated artificial intelligence story” and an “attractive valuation” (see 20 Hidden Gem AI Stocks). The Wall Street bank set a price target of $92 with a 25% upside from its current trading price. This comes after the software company persuaded the court to partially reverse a jury’s earlier decision to award rival Appian $2bn in damages after a legal battle alleging that Pegasystems stole its rival’s trade secrets.

“We recently moved PEGA to our top pick, seeing the recent VA Appellate Court ruling as a key unlock on valuation, sentiment, and investor interest now that the $2B lawsuit and going concern risk have now rolled off (expect few-hundred million potential risk). While there is still risk given APPN re-appealing to the VA Supreme Court and impact from legal fees/distractions, we significantly lowered the discount applied to our base case post-appeal (from $1B to $200M).”

– Citi analysts Steven Enders and George Kurosawa