CAMBRIDGE, Mass. - Pegasystems Inc . (NASDAQ: NASDAQ:PEGA), a prominent provider of enterprise AI decisioning and workflow automation platforms, has announced that its Pega Cloud for Government solution has obtained FedRAMP High Ready compliance. This designation indicates the platform's readiness to handle the U.S. Federal Government's most sensitive IT projects, meeting the stringent security standards required for high-impact federal data.
The Federal Risk and Authorization Management Program (FedRAMP) is a government-wide program that standardizes the security assessment, authorization, and continuous monitoring for cloud products and services.
Achieving the FedRAMP High Ready status involves passing a rigorous assessment of hundreds of security controls based on the National Institute of Standards and Technology (NIST) SP 800-53, which is crucial for protecting against data breaches and cyber threats.
Pega Cloud for Government, powered by AWS GovCloud, is designed to offer a secure, compliant, and fully managed cloud environment that enables government agencies to create applications tailored to their specific workloads. This solution aims to enhance operational efficiency by connecting data and systems across different sectors, while also providing the scalability necessary to adapt to evolving requirements.
The company's commitment to meeting the high security and compliance demands of federal agencies is underscored by this recent achievement. Pega's solutions are already utilized by several large government entities to support their digital modernization efforts.
In addition to its security credentials, Pega will be hosting Government Empowered 2024, an annual government conference on October 16 in Washington, DC, where attendees can learn about success stories from government clients worldwide.
Pegasystems has been a trusted partner for U.S. federal and state governments, leveraging its technology in significant IT projects. According to Jen Pratt, General Manager, US government at Pega, the FedRAMP High designation offers additional assurance to agencies that their digital transformation initiatives are in compliance with the highest government security standards.
This news is based on a press release statement from Pegasystems Inc.
In other recent news, Pegasystems, a software company, has been the subject of various analyst ratings and target revisions. RBC Capital maintained its Outperform rating on Pegasystems, emphasizing a strong Free Cash Flow (FCF) outlook and a stable financial future.
This follows the firm's participation in Pegasystems' conference and investor day, where the company's Annual Contract Value (ACV) growth targets and AI contributions were discussed.
JPMorgan (NYSE:JPM) revised its price target for Pegasystems to $70, down from $75, but maintained an Overweight rating. The firm anticipates a steady quarterly performance from Pegasystems, with ACV growth expected to be close to or slightly below the rate at the end of the previous year. Despite the reduced price target, JPMorgan views the stock's current valuation as favorable for long-term investors.
Simultaneously, Citi reaffirmed its Buy rating on Pegasystems, maintaining a price target of $87.00. The firm announced the expiration of its Upside Catalyst Watch call for Pegasystems, suggesting that anticipated developments have been fully considered in the current rating and target. These recent developments underscore the continued interest and analysis of Pegasystems by major financial institutions.
InvestingPro Insights
Pegasystems Inc. (NASDAQ: PEGA) has recently achieved a significant milestone by securing the FedRAMP High Ready compliance for its Pega Cloud for Government solution, reinforcing its position as a secure and reliable provider for U.S. federal agencies. In light of this development, let's delve into some key financial metrics and InvestingPro Tips that reflect the company's current market stance and future potential.
InvestingPro Tips for Pegasystems highlight that the company is expected to see net income growth this year, which could be indicative of its robust business model and the increasing demand for secure cloud solutions in government sectors. Moreover, Pegasystems is trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock could be undervalued given its growth prospects.
From a financial perspective, Pegasystems boasts a market capitalization of approximately $5.2 billion, illustrating the scale of its operations within the enterprise software market. The company's P/E ratio stands at 67.41, and when adjusted for the last twelve months as of Q1 2024, it shows a more favorable figure at 50.25. This adjustment reflects a more current valuation based on recent earnings.
Another notable metric is the company's revenue growth, which was 13.44% for the last twelve months as of Q1 2024. This growth is a testament to Pegasystems' ability to expand its business and continually innovate its offerings to meet the evolving needs of government and enterprise clients.
For readers interested in a deeper analysis and more InvestingPro Tips, which can provide additional insights into Pegasystems' financial health and stock performance, visit https://www.investing.com/pro/PEGA. There are over 10 additional InvestingPro Tips available, offering a comprehensive look at the company's financial metrics and market position. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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