PagerDuty analysts shower stock with love even after doubling in a month

PagerDuty Inc. shares finished higher Monday as analysts started coverage of the DevOps company’s stock less than a month after it started trading, with the split among buys and holds appearing to be an opinion of how much growth the stock’s doubling in a month is already priced in.

PagerDuty PD, +5.69%  shares closed up 5.7% at $49.04, compared with 0.5% declines for both the S&P 500 index SPX, -0.45%  and the tech-heavy Nasdaq Composite Index COMP, -0.50% .

In mid-April, PagerDuty shares surged nearly 60% on their first day of trading, and are 104% above their initial public offering price of $24. By comparison, the S&P 500 is up 1.5% and the Nasdaq is up 2.2% since PagerDuty’s IPO.

Read: PagerDuty IPO: 5 things to know about the DevOps company

By Monday, seven analysts were covering PagerDuty, three with buy ratings and four with hold ratings, and an average price target of $48.45, according to FactSet data.

PagerDuty offers a subscription service that allows businesses to improve the constant interplay between software developers and operators — so-called DevOps — within their organization and lets them use real-time data to address incidents that occur. Competitors include Atlassian Corp.’s TEAM, +0.14% OpsGenie and Splunk Inc.’s SPLK, -0.09% VictorOps products.

BTIG analyst Joel Fishbein, who has a neutral rating on the stock, said he expects north of 30% growth at PagerDuty “for many years,” but said he is “watching closely for a pullback as an entry point” given the stock’s impressive run in less than a month.

Morgan Stanley analyst Sanjit Singh, who has an equal-weight rating and a $47 price target, also said PagerDuty growth opportunity “looks priced in.”

“We believe valuation levels currently assume significant outperformance relative to our estimates resulting in a more balanced risk/reward,” Singh said

Singh also

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