Pegasystems' (PEGA) 2026 guidance has room for upside, supported by stronger sales execution and growing adoption of its Blueprint tools, which are speeding cloud migrations, RBC Capital Markets said Wednesday in a report.

The company is moving prospects from first engagement to signed deals more quickly, helped by broader use of Blueprint, RBC said.

The stock offers a favorable risk-reward profile with Pegasystems' AI strategy remaining underappreciated, while the recent pullback in the shares is overdone, RBC said.

Pegasystems has "market-leading technologies" in process and case management,

robotic process automation, decision-making models, and real-time intelligence monitoring "that would be difficult and costly to replicate," the report said.

RBC cut its price target on Pegasystems stock to $65 from $80 and maintained its outperform rating.

Price: 39.59, Change: +1.66, Percent Change: +4.38