Magic Software Enterprises Ltd. (MGIC) Price Target Analysis
Updated Jun 18, 2026
Analyst Rating: Buy
Based on 6 analysts6.4% Below Target
MGIC trades 6.4% below Wall Street's consensus target of $18.50.
Current Price$17.38
Average Target$18.50
Target
Current
Low$15.00
Median$18.50
High$22.00
Analyst Target Range
Forward P/E15.0x
(Value)
PEG Ratio0.63
(Undervalued)
Implied Growth+42.2%
(High Growth)
Analyst Spread37.8%
(Moderate)
Price Forecast (1 Year)
Last 12 months price action with 12-month analyst target path
Consensus Scenario Assumptions
The base valuation assumes MGIC achieves its forward estimates and maintains a stable P/E multiple of 15.0x. This scenario reflects the blended consensus of 6 Wall Street analysts, balancing both positive catalysts and macroeconomic headwinds over the next 12 months.
MGIC Price Target Analysis
Updated June 22, 2026As of June 22, 2026, Magic Software Enterprises Ltd. (MGIC) has a Wall Street consensus price target of $18.50, based on estimates from 6 covering analysts. With the stock currently trading at $17.38, this represents a potential upside of +6.4%. The company has a market capitalization of $853M.
Analyst price targets range from a low of $15.00 to a high of $22.00, representing a 38% spread in expectations. The median target of $18.50 aligns closely with the consensus average.
The current analyst consensus rating is Buy, with 2 analysts rating the stock as a Buy or Strong Buy,2 rating it Hold, and 2 rating it Sell or Strong Sell. The mixed ratings reflect uncertainty about near-term direction.
From a valuation perspective, MGIC trades at a trailing P/E of 23.2x and forward P/E of 15.0x. The forward PEG ratio of 0.63 suggests the stock may be undervalued relative to its growth. Analysts expect EPS to grow +42.2% over the next year.
Our proprietary valuation model, which blends historical multiples with forward estimates, suggests a base-case price target of $22.94, with bear and bull scenarios of $14.46 and $30.23 respectively. Model confidence stands at 40/100, suggesting limited visibility into future performance.
Investment Context: Price targets represent analyst expectations for the next 12 months and should be considered alongside your own research. Targets are based on analysts' assumptions about earnings growth, margins, and market conditions which may change. For sector-specific context, view other Technology stocks.
Analyst Sentiment Comparison
Industry Peer AnalysisAvg Peer Upside
+46.2%
Industry Consensus
Avg Forward P/E
23.1x
(Fair)
Peers with Coverage
10 / 10
Active Analyst Tracking
| Company | Market Cap | Price | Target | Upside Potential | Rating | Fwd P/E | Analysts |
|---|---|---|---|---|---|---|---|
 PEGAPegasystems Inc. | $5.1B | $30.09 | $56.60 | +88.1% | Buy | 11.1x | 23 |
 APPNAppian Corporation | $1.5B | $20.95 | $27.75 | +32.5% | Hold | 21.3x | 19 |
 AGYSAgilysys, Inc. | $2.5B | $87.51 | $107.50 | +22.8% | Buy | 53.2x | 8 |
 PCTYPaylocity Holding Corporation | $5.4B | $101.06 | $147.09 | +45.5% | Buy | 12.5x | 41 |
 MSFTMicrosoft Corporation | $2.8T | $379.40 | $551.96 | +45.5% | Buy | 22.6x | 82 |
 NOWServiceNow, Inc. | $98.5B | $95.04 | $150.26 | +58.1% | Buy | 22.9x | 69 |
 MNDYmonday.com Ltd. | $3.7B | $71.53 | $117.19 | +63.8% | Buy | 16.1x | 25 |
 ASANAsana, Inc. | $1.6B | $6.92 | $7.83 | +13.2% | Hold | 27.0x | 19 |
 ORCLOracle Corporation | $530.1B | $184.31 | $253.50 | +37.5% | Buy | 22.9x | 86 |
 SAPSAP SE | $180.9B | $155.22 | $240.67 | +55.1% | Buy | 21.2x | 43 |
MGIC — Frequently Asked Questions
Quick answers to the most common questions about buying MGIC stock.
What is the MGIC stock price target for 2026?
The consensus price target for MGIC is $18.5, close to the current price of $17.38 (6.4% implied move). Based on 6 analyst estimates, the stock appears fairly valued near current levels.
Is MGIC a buy, sell, or hold?
MGIC has a consensus rating of "Buy" based on 6 Wall Street analysts. The rating breakdown is mixed, with 2 Hold ratings making up the largest segment. The consensus 12-month price target of $18.5 implies 6.4% upside from current levels.
Is MGIC stock overvalued or undervalued?
With a forward P/E of 14.9828x, MGIC trades at a relatively low valuation. The consensus target of $18.5 implies 6.4% appreciation, suggesting the market may be pricing in risks.
How high can MGIC stock go?
The most bullish Wall Street analyst has a price target of $22 for MGIC, while the most conservative target is $15. The consensus of $18.5 represents the median expectation. Our quantitative valuation model projects a bull case target of $30 based on optimistic growth and margin assumptions. These targets typically reflect 12-month expectations.
How many analysts cover MGIC stock?
MGIC is moderately covered, with 6 analysts providing price targets and ratings. Of these, 0 have Strong Buy ratings, 2 have Buy ratings, 2 recommend Hold, and 2 have Sell or Strong Sell ratings. Higher analyst coverage generally indicates greater institutional interest and more reliable consensus estimates.
What is the MGIC stock forecast?
The 12-month MGIC stock forecast based on 6 Wall Street analysts shows a consensus price target of $18.5, with estimates ranging from $15 (bear case) to $22 (bull case). The median consensus rating is "Buy". Our proprietary valuation model produces a base case fair value of $23, with bear/bull scenarios of $14/$30.
What is MGIC's fair value based on fundamentals?
Our quantitative valuation model calculates MGIC's fair value at $23 (base case), with a bear case of $14 and bull case of $30. The model uses discounted cash flow analysis, historical growth rates, and margin mean-reversion to project FY+2 earnings, then applies an appropriate P/E multiple. The model confidence score is 40/100.
What is MGIC's forward P/E ratio?
MGIC trades at a forward P/E ratio of 15.0x based on next-twelve-months earnings estimates compared to a trailing P/E of 23.2x. The lower forward P/E indicates analysts expect earnings growth. A forward P/E is useful for comparing valuations when earnings are expected to change significantly.
Should I buy MGIC stock?
MGIC appears fairly valued according to analysts, with a "Buy" rating and minimal upside to the $18.5 target. Consider your investment thesis and risk tolerance. This information is for educational purposes only. Always conduct your own research, consider your financial situation, and consult a financial advisor before making investment decisions.
Why do MGIC price targets vary so much?
MGIC analyst price targets range from $15 to $22, a 38% moderate spread showing some variance in outlooks. Differences stem from varying assumptions about revenue growth, profit margins, competitive dynamics, and valuation multiples. The $18.5 consensus represents the middle ground. Our model's $14-$30 range provides an independent fundamental perspective.
Consensus-Based Analysis Tools
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare