Morgan Stanley analyst Sanjit Singh has maintained their neutral stance on PD stock, giving a Hold rating yesterday.
Sanjit Singh has given his Hold rating due to a combination of factors influencing PagerDuty’s current and future performance. While the company demonstrated strong operational efficiency with a significant improvement in margins, surpassing expectations, the revenue outlook for the upcoming fiscal year fell slightly short of consensus estimates. This indicates that while the company is managing its operations well, there is some concern about its ability to drive revenue growth in the near term.
Additionally, although there are positive signs of traction in the enterprise platform sales, the broader macroeconomic uncertainty is expected to limit growth prospects. The company’s focus on expanding its customer base outside of core incident management is promising, but the anticipated single-digit growth in the upcoming fiscal year suggests a cautious approach. Given these mixed signals, a Hold rating reflects a balanced view of the company’s potential and challenges.
In another report released yesterday, TD Cowen also reiterated a Hold rating on the stock with a $19.00 price target.