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On Friday, Truist Securities analyst Joel Fishbein revised the price target for PagerDuty (NYSE:PD) shares, reducing it to $26.00 from the previous $30.00. Despite the price target adjustment, the firm maintained a Buy rating on the stock. According to InvestingPro data, the stock currently trades at $18.06, with analyst targets ranging from $18 to $26. Fishbein’s commentary highlighted PagerDuty’s solid fourth-quarter results for fiscal year 2025, noting the company’s successful year of transition, which was marked by changes in its enterprise sales approach and the advancement of its multi-product platform strategy.
PagerDuty’s go-to-market (GTM) adjustments over the past year have begun to bear fruit, leading to more significant multi-product strategic deals. With impressive gross profit margins of 83% and revenue growth of 8.5% in the last twelve months, this progress has also contributed to stabilized Annual Recurring Revenue (ARR) growth and Net New ARR (NNARR). Fishbein pointed out that while management expressed optimism regarding the improvement in sales productivity and the quality of the pipeline, they also provided guidance for the upcoming year that he considered to be cautious but prudent.
The analyst’s reiteration of the Buy rating comes with adjusted estimates, reflecting the new price target. InvestingPro analysis reveals several positive indicators, including strong liquid assets position and expected net income growth this year. The decision to lower the target price is based on a comprehensive assessment of PagerDuty’s recent performance and future prospects. Fishbein’s analysis took into account the company’s operational execution and the strategic initiatives implemented over the previous year. Want deeper insights? InvestingPro offers 13 additional investment tips for PagerDuty.
PagerDuty, known for its incident response platform for IT departments, has been working on expanding its offerings and enhancing its sales strategy to better penetrate the enterprise market. The company’s focus on multi-product deals is a strategic move to deepen customer engagement and increase the value of contracts.
The updated price target of $26 represents Truist Securities’ current valuation of PagerDuty stock based on the firm’s analysis. Investors and stakeholders in PagerDuty will be watching closely to see how the company’s efforts in GTM adjustments and sales productivity improvement will translate into financial performance in the upcoming fiscal year.
In other recent news, PagerDuty reported a strong financial performance in the fourth quarter of 2025, with earnings per share (EPS) of $0.22, exceeding analysts’ expectations of $0.16. The company also surpassed revenue projections, achieving $121.4 million against an anticipated $119.7 million. Alongside these results, PagerDuty’s board authorized a new share repurchase program, allowing for the buyback of up to $150 million of common stock. Canaccord Genuity adjusted its price target for PagerDuty, reducing it slightly to $23 while maintaining a Buy rating, indicating confidence in the company’s potential for growth and improved profit margins. The firm highlighted PagerDuty’s recent quarters’ improved profit performance and anticipated operating margins of 25% on an annualized basis within three years. PagerDuty also introduced new AI products and restructured its sales team, indicating a strategic focus on enterprise sales and digital operations modernization. These developments reflect PagerDuty’s ability to consistently outperform market predictions and maintain a robust position in the digital operations management sector.
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