PagerDuty, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Andrew Sherman from TD Cowen maintained a Buy rating on the stock and has a $10.00 price target.
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Andrew Sherman has given his Buy rating due to a combination of factors, starting with PagerDuty’s solid fourth-quarter performance, where revenue and operating income exceeded expectations even though the fiscal 2027 outlook was muted. He views the transition to a usage-based pricing model as strategically vital, since it reduces dependence on seat-based sales and is already supporting larger, multi-year customer commitments that should enhance long-term growth potential.
He also notes early signs of reacceleration, including strengthening net new and expansion activity, improving net retention expectations, and a rising mix of AI-native and AI-first customers signing sizable contracts. Combined with an exceptionally low valuation relative to sales and free cash flow, Sherman believes that even a modest return to mid-single-digit growth would materially re-rate the stock, justifying a Buy recommendation despite the reduced price target.
According to TipRanks, Sherman is an analyst with an average return of -3.7% and a 36.73% success rate. Sherman covers the Technology sector, focusing on stocks such as JFrog, Datadog, and Procore Technologies.
In another report released today, TipRanks – Google also upgraded the stock to a Buy with a $8.00 price target.