Expert Outlook: PagerDuty Through The Eyes Of 5 Analysts

Ratings for PagerDuty (NYSE:PD) were provided by 5 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $25.4, a high estimate of $30.00, and a low estimate of $23.00. Marking an increase of 5.83%, the current average surpasses the previous average price target of $24.00.

Decoding Analyst Ratings: A Detailed Look

A clear picture of PagerDuty's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to PagerDuty. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of PagerDuty compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for PagerDuty's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of PagerDuty's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on PagerDuty analyst ratings.

Delving into PagerDuty's Background

PagerDuty Inc is a digital operations management platform that manages urgent and mission-critical work for a modern, digital business. Its platform harnesses digital signals from virtually any software-enabled system or device and combines it with human response data to take the right actions in real-time. The product offerings of the company include PagerDuty Incident Management, DevOps, AIOPs, Process Automation, and Customer Service Operations.

PagerDuty's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Over the 3 months period, PagerDuty showcased positive performance, achieving a revenue growth rate of 7.68% as of 30 April, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: PagerDuty's net margin excels beyond industry benchmarks, reaching -21.64%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -13.92%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): PagerDuty's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -2.6%, the company may face hurdles in achieving optimal financial performance.

Debt Management: PagerDuty's debt-to-equity ratio surpasses industry norms, standing at 2.64. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.