Why These PagerDuty Analysts Are Impressed By Q3 Execution

Zinger Key Points
  • PagerDuty execution in a tough selling environment was impressive, one analyst says.
  • The company’s performance inspires confidence in the strength of its value proposition, another analyst states.

Following the quarterly release, PagerDuty Inc.’s PD shares continued to gain on Friday.

RBC Capital Markets On PagerDuty

Analyst Matthew Hedberg reiterated an Outperform and a price target of $32.

“PagerDuty delivered a strong quarter with revenue and billings outperformance while achieving non-GAAP profitability a quarter ahead of guidance,” Hedberg said in a note.

“We remain impressed with execution and durability in a challenging selling environment as the focus remains on the platform's high ROI,” the analyst wrote.

“With Q4/23 guidance that assumes a normal Q4 budget flush, we would have preferred a slightly more conservative stance,” he added.

Check out other analyst stock ratings.

Truist On PagerDuty

Analyst Joel Fishbein maintained a Hold rating and a price target of $30.

“PD delivered another solid quarter of execution, with revenue growth meeting expectations and a surprise Non-GAAP operating profit as operating efficiencies begin to drive leverage ahead of schedule,” Fishbein mentioned in a note.

“The company’s momentum remained strong across their upsell motion, giving us incremental confidence in the strength of their value proposition during adverse economic conditions,” the analyst said.

“Despite the strength, the company was prudent with guidance, reiterating FY23 revenue and gave 4Q23 non-GAAP profit guidance in line with consensus,” he added.

PD Price Action: Shares of PagerDuty had risen by 6.77% to $24.06 at the time of publication on Friday.

See Also: Microsoft Sees Dark Clouds Forming Over Azure Business Amid PC Market Slump

Photo: StratfordProductions via Shutterstock

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Posted In: Analyst ColorEarningsNewsReiterationAnalyst RatingscloudJoel FishbeinMatthew HedbergRBC Capital MarketsTruist
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