The SMID Point

Research evidence excerpt

The SMID Point

timing, structure, or terms. Management also noted that it does not intend to

provide further updates unless additional disclosure becomes necessary. Today's

announcement follows months of strong share price performance driven by M&A-

related newsflow (note), with Nexa shares gaining another ~8% yesterday.

Neutral | Target price US$16.00

Gabriel Barra

Progress Software Corporation (PRGS.O) - F2Q26 Review + Callback Color:

Steady As She Goes

A solid overall print featured meaningful license revenue upside driving a ~5pt beat

on revenue growth, where pulled-forward deals coming at favorable incremental

margins also benefitted profitability (~1pt beat on OPM). All in, this was another

quarter of commendable execution with the company tapping tangible AI-

driven/enhanced use-case opportunities inside a reliable base of customers,

defying persistent (and overblown, in our view) concerns of tech obsolescence ("AI

Loser"). Against an incrementally more favorable acquisition target backdrop,

portfolio-advancing M&A should continue powering a profitable growth-by-

acquisition narrative, where we believe ~11x EV/FCF’CY26E and ~6x P/E’CY26E

remains compelling for an asset with a sticky large enterprise customer base

showing scant evidence of wallet/logo churn. Steady infra-skewing SaaS/AI-

credibility status gains and consistent execution - a PRGS hallmark - continue to

be undermined at current levels. Reaffirm Buy with $46 TP, against intact out-year

multiples and modestly adjusted estimates.

Buy | Target price US$46.00

Fatima Boolani

FY2026 Outlook

$ millions, except per share Citi Consensus Citi - Prior Guidance Prior Guidance

Item Metrics Metrics Citi Δ Metrics Citi Δ Metrics Cons. Δ Citi Prior Δ Metrics

$/bps $/bps Low Mid High $/bps $/bps Low Mid High

FY2026E