PagerDuty (PD) Witnesses Pessimism From Analysts

We recently published 10 Best SaaS Stocks Trading at a Discount.  PagerDuty, Inc. (NYSE:PD) is one of the best SaaS stocks trading at a discount.

PagerDuty, Inc. (NYSE:PD) is a software company that enables businesses to monitor their networks and services for incident response and operations management. Bank of America set a $12 share price target for the firm and cut its rating to Underperform on December 2nd. It explained that some of the factors that drove the latest coverage for PagerDuty, Inc. (NYSE:PD) include overall revenue stability, net revenue retention, and billings. BofA added that the firm was suffering from broader economic woes that affected its billings due to layoffs and budget constraints.

PagerDuty, Inc. (NYSE:PD)’s third-quarter fiscal results, reported on November 25th, generated quite a bit of fireworks as they saw the shares dip by 25.7% During the quarter, the firm brought in $124.5 million in revenue and $0.33 in per share profit. PagerDuty, Inc. (NYSE:PD)’s profit reading beat analyst estimates of $0.24, but its revenue missed estimates of $124.9 million. On November 26th, Cannacord Genuity reiterated its Buy rating for the shares and kept a $19 share price target. The firm outlined that PagerDuty, Inc. (NYSE:PD) could experience growth if small and medium businesses perform well. It added that another tailwind for the firm could come in the form of large businesses growing its presence in their internal operations.

While we acknowledge the potential of PD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.