Citi has named Pegasystems one of its new top picks, citing an "underappreciated" artificial intelligence story and attractive valuation.
The Wall Street bank has set a target price of $92 for Pegasystems, representing a potential 25% upside from its current trading price of around $73.50.
Pegasystems, an enterprise software firm, has seen its stock price surge by over 50% year-to-date, outperforming the broader iShares Expanded Tech-Software Sector ETF , which is up nearly 14% this year.
Citi analysts view this development as a catalyst for the stock to rise.
On a fundamental level, Citi's analysts also believe that Pegasystems' unique approach to artificial intelligence, particularly its "blueprint" strategy, sets it apart from competitors, calling it an "underappreciated gen AI story."
Persons:
PEGA, Pegasystems, Appian, Steven Enders, George Kurosawa, JMP, — CNBC's Michael Bloom
Organizations:
Citi, Software, Appian Corporation, Virginia, Wall, Revenue
Locations:
Massachusetts