Pegasystems' (PEGA) under-the-radar artificial intelligence play remains "undervalued" by the Wall Street, said Wedbush in a Tuesday note, adding that it saw confidence in the company to drive profitable growth while its Blueprint software continues to gain traction.

Wedbush said its recent checks showed Pega Cloud furthering its conversion cycle acceleration heading into H2, as Pegasystems focusses on cross-selling and upselling into its existing client base and expand with new customers.

With the federal government actively working on cloud deployment, Pegasystems is aiming to capitalize on this momentum by preparing its advanced AI solutions for government use cases, said Wedbush analysts.

Pegasystems is "well-positioned" to tackle DOGE related initiatives as the company's value proposition revolves around reducing employees and phasing out outdated data systems, said Wedbush.

The firm maintained its outperform rating on the stock and raised its price target to $68 from $63.

Price: 50.70, Change: +0.27, Percent Change: +0.53