TD upgrades PagerDuty to Buy on high likelihood of buyout

TD Cowen upgraded PagerDuty (PD) to Buy from Hold with a price target of $22, up from $17. The firm sees a high likelihood of PagerDuty being acquired after Reuters reported the company is working with Qatalyst Partners after receiving buyout interest. Qatalyst has a strong track of software deals and many similar situations have resulted in sales over the years, the analyst tells investors in a research note. TD sees a range of $19 to $24.50 per share in a potential buyout and finds the stock’s risk/reward “compelling” at current levels. PagerDuty shares are up 5%, or 80c, to $16.52 in premarket trading.