Progress Software (PRGS) Expands Agentic RAG, Is The Stock Cheap?

Agentic RAG upgrade puts Progress Software in the AI workflow spotlight

Progress Software (PRGS) is back in focus after rolling out new Agentic RAG features, including a Microsoft Teams app, a more capable Smart Agent, and a governance focused WordPress integration.

Progress Software’s Agentic RAG update lands after a choppy run for the shares, with the 30 day share price return down 10.48% and the year to date share price return down 5.99%, while the 1 year total shareholder return has fallen 15.71%.

Scan curated AI workflow plays alongside Progress Software by jumping into the 92 AI infrastructure stocks that are helping enterprises plug large language models straight into everyday tools and data stacks.

Bulls point to Progress Software’s AI foothold and valuation discount; bears see a stalled share price and execution risk. The numbers now on the table start to show which side has stronger support.

Most Popular Narrative: 31% Undervalued

Progress Software’s most followed valuation storyline pegs fair value at $56.20 versus a last close of $38.61. This frames the current Agentic RAG buzz against a longer running acquisition and cash flow thesis.

The main factor that has to go right is that Progress Software maintains disciplined execution on AI focused M&A and integrations so that earnings, margins and free cash flow stay aligned with its stated total growth strategy.

The current valuation and margin profile imply the share price reflects a modest earnings growth story, so if Progress Software delivers the higher EBITDA contribution it targets from acquisitions such as Domo, the stock appears to embed room for upside re-rating.

See why 6 investors see Progress Software as 31% undervalued.

Result: Fair Value of $56.20 (UNDERVALUED)

Still, if the Domo integration slips or AI heavy SaaS margins come in weaker than modeled, the current Progress Software undervaluation story could quickly lose conviction.

Find out about the key risks to this Progress Software narrative.

Next Steps

If the Progress Software story so far feels mixed, use that tension as a prompt to move fast and pressure test the numbers yourself. A good place to start is the balance of concerns and bright spots in the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Progress Software?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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