Pegasystems' (PEGA) Blueprint application design tool is accelerating sales cycles for the company and its partners, with faster enterprise closings and about a 30% increase in total pipeline for Pegasystems, RBC Capital Markets said in a Monday note.

RBC said its conversations with Pegasystems partners and customers indicated positive views on Blueprint, particularly in design and prototyping. Pegasystems could also tap into a significant market of legacy applications that need upgrading through process automation, the brokerage added.

"Partners note that if anything, customers are leaning more aggressively into legacy modernizations as they prepare their systems/data estates to be able to leverage AI and Agents," RBC said.

Pegasystems' long-term financial targets, which include 80% in gross margin and at least $700 million in free cash flow by 2028, appear achievable with AI and agentic AI as upside drivers, the investment firm added.

RBC reiterated its outperform rating and $60 price target on Pegasystems.

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