PagerDuty upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Sanjit Singh upgraded PagerDuty to Overweight from Equal Weight with a price target of $36, up from $32. He has remained on the sidelines since PagerDuty’s IPO in 2019, largely due to concerns on valuation, but revenue growth has proven durable and he believes that the company can sustain about 20% growth over the next few years, Singh tells investors. The stability in revenue stemming from a subscription model has allowed management to execute on initiatives to improve the cost structure and he sees a "strong pivot to profitability" coming, Singh added.