PagerDuty upgraded to Buy from Hold at Truist

Truist upgraded PagerDuty to Buy from Hold with a price target of $30, up from $25. The firm believes the risk/reward is favorable at current levels following the selloff over the last month that accelerated following their earnings announcement on Thursday, the analyst tells investors in a research note. Leading indicators of demand for offerings outside of incident response and a de-risked model setup from PagerDuty’s revised outlook make this an enticing entry point, but if PagerDuty is not able to accelerate annual recurring revenue growth beyond consensus expectations, their strong core technology assets make them an attractive acquisition candidate, Truist says.