William Blair analyst Jake Roberge has maintained their bullish stance on PD stock, giving a Buy rating yesterday.
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Jake Roberge’s rating is based on a combination of factors that highlight both challenges and opportunities for PagerDuty. Despite the company’s recent underperformance in terms of revenue and annual recurring revenue (ARR), largely due to seat reductions at major clients, there are positive developments worth noting. The company is actively addressing these issues by focusing on customer retention and improving visibility into renewal activities, particularly through multi-year deals.
Moreover, PagerDuty is making significant strides in margin expansion, achieving operating margins that surpassed expectations by a considerable margin. The company is also experiencing a notable increase in new customer acquisitions, with new logo activity showing substantial growth compared to the previous year. Additionally, PagerDuty’s advancements in AI, particularly with its AIOps solution, demonstrate promising growth and potential for future success. These factors collectively contribute to Jake Roberge’s decision to maintain a Buy rating for PagerDuty’s stock.
According to TipRanks, Roberge is an analyst with an average return of -5.5% and a 35.52% success rate. Roberge covers the Technology sector, focusing on stocks such as Jamf Holding, Adobe, and Elastic.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $20.00 price target.