PagerDuty price target lowered to $17 from $18 at RBC Capital

RBC Capital lowered the firm’s price target on PagerDuty (PD) to $17 from $18 and keeps an Outperform rating on the shares. The company reported a mixed quarter and outlook as seat-based optimizations accelerated, and with that, PagerDuty is looking to emphasize multi-year contracts and earlier renewal processes to combat seat pressures, the analyst tells investors in a research note. RBC adds however that while it is cautious on seat-based headwinds and has less confidence in short-term top-line acceleration, it remains encouraged by the company’s continued leverage shown through profitability outperformance.