TD Cowen downgrades PagerDuty to Market Perform with macro pressures not easing

TD Cowen downgraded PagerDuty to Market Perform from Outperform with a price target of $23, down from $29, following what the firm calls “another weak billings” quarter. Billings and NRR were both below the firm’s estimates as macro pressures are not easing and seem to be driving higher churn and growing pressure during renewals, says the firm, which lowered its FY25 growth forecast to 10% from 17%.