Truist Highlights Valuation Gap for PagerDuty (PD) Amid AI Market Divide
PagerDuty Inc. (NYSE:PD) is one of the best small cap tech stocks to invest in now. On January 7, Truist lowered its price target for PagerDuty from $20 to $16 with a Buy rating and noted a sharp market divide between AI winners and losers.
The firm highlighted that seat-based business models are facing a valuation gap that is likely to persist into 2026. While this bifurcated sentiment remains a challenge, Truist suggested that some of last year’s underperformers may be positioned for a rebound.
On January 5, RBC Capital downgraded PagerDuty to Sector Perform from Outperform and reduced the price target to $15 from $17. The firm anticipates that the company will face ongoing pressure from its seat-based business model and noted that the incident management market is likely to undergo further consolidation. Additionally, the firm informed investors that there is limited potential for margin expansion in the short term.
PagerDuty Inc. (NYSE:PD) operates a digital operations management platform. The company’s digital operations management platform collects data and digital signals from virtually any software-enabled system or device and leverages ML to correlate, process, and predict opportunities and incidents.
While we acknowledge the potential of PD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Content Original Link:
" target="_blank">
