PagerDuty's Shares Gain On Q2 Earnings Beat, Analyst Price Target Bump

PagerDuty Inc PD reported Q2 revenue of $67.5 million, up 33.2% year-on-year, surpassing the analyst consensus of $65.6 million. The adjusted EPS loss of $(0.13) beat the consensus loss of $(0.15).
The software company sees Q3 revenue between $69 million - $71 million, above the consensus of $68.3 million. The adjusted EPS loss between $(0.10) - $(0.09) compares to the consensus loss of $(0.09).
Analysts celebrated the beat with price target raise, betting on the upside from enterprise digital transformation.
Baird analyst Rob Oliver raised the PT to $60 from $53, implying a 35.4% upside, and reiterated an Outperform. He expects the improved cadence of execution and strengthening fundamentals to drive a higher valuation.
Oliver continues to view PagerDuty as a compelling play on the growing importance of IT to revenue growth as companies digitally transform their businesses.
JPMorgan analyst Sterling Auty raised the PT to $52 from $47, signifying a 17.4% upside, and maintained an Overweight.
Morgan Stanley analyst Sanjit Singh raised the PT to $54 from $50, indicating a 21.9% upside.
Price Action: PD shares traded higher by 10.70% at $49.05 in the market session on the last check Friday.

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