PagerDuty, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Sherman from TD Cowen reiterated a Buy rating on the stock and has a $22.00 price target.
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Andrew Sherman has given his Buy rating due to a combination of factors that highlight PagerDuty’s potential for growth and strategic positioning. The company has shown promising indicators in the second quarter, with new and expansion bookings growing significantly and a notable increase in net new high-value customers. Management’s confidence in these leading indicators suggests stronger bookings in the latter half of the year.
Furthermore, PagerDuty’s shift to a usage-based pricing model is expected to better align revenue with customer value, potentially driving growth acceleration in the coming fiscal years. The company’s strategic hiring of a new Chief Revenue Officer with strong enterprise experience and its significant presence in the AI ecosystem further bolster its growth prospects. Additionally, the current attractive valuation and the potential for PagerDuty to be an acquisition target contribute to the positive outlook, supporting the Buy rating with a price target of $22.
Sherman covers the Technology sector, focusing on stocks such as Datadog, JFrog, and ServiceTitan, Inc. Class A. According to TipRanks, Sherman has an average return of 10.7% and a 62.12% success rate on recommended stocks.