Analyst Picks Pegasystems Stock Among Predicted Top 10 Tech Winners Of 2025: Retail Shares The Optimism

Pegasystems, Inc. ($PEGA) shares have generated above-market returns this year, thanks to its stellar 91% year-to-date (YTD) rally. An analyst at Wedbush suggested the gains could carry over into the new year.

Cambridge, Massachusetts-based Pegasystems calls it an enterprise transformation company that helps organizations build for change with artificial intelligence (AI) decisioning and workflow automation. 

The company is expected to continue to outperform, thanks to positive outlook for the tech sector and AI technology.

Wedbush analyst Daniel Ives discussed his predictions for potential 2025 tech winners in a late Monday note. He said that tech stocks will likely increase by 25% in 2025. This would come on top of nearly 27% gain for 2024, taking Invesco QQQ Trust ($QQQ) as a proxy.

His optimism is premised on expectations for a less stringent regulatory environment under the incoming Donald Trump administration, stronger governmental AI initiatives, and a goldilocks scenario for big techs and Tesla, Inc. ($TSLA). 

Although there could be headwinds such as Federal Reserve interest-rate concerns, the China tariff war, and fears concerning overbought levels, the analyst expects these to create opportunities to own the tech theme.

The analyst named Pegasystems his eighth pick in a list of the top ten tech stocks that will potentially outperform in 2025. The company is one of the four AI software vendors on the analyst’s list, which also included MongoDB, Inc. ($MDB), Snowflake, Inc. ($SNOW), and Salesforce, Inc. ($CRM).

According to the analysts, the AI software era has kickstarted.

On Dec. 23, Loop Capital raised the price target for Pegasystems stock from $90 to $115, TheFly reported. The firm attributed the upward adjustment to the finetuning of estimates for select software names. Its conversations with management, field personnel and potential buyers suggested business fundamentals remaining relatively consistent with recent quarters, setting the stage for most software vendors reporting in line to slightly better-than-expected December quarter results.

PEGA sentiment and message volume December 31, 2024, as of 1:28 am ET | Source: Stocktwits

On Stocktwits, sentiment toward Pegasystems stock is ‘extremely bullish’ (83/100), improving from ‘neutral’ a day ago, while message volume stayed at ‘high’ levels.

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