PagerDuty gains after TD Cowen upgrades on high acquisition potential

PagerDuty

28/07/2025 13:18

** Shares of software firm PagerDuty PD.N gain 6.2% to $16.69 premarket

** TD Cowen upgrades stock to "buy" from "hold", raises PT to $22 from $17, now implying an upside of almost 40% to last close

** Brokerage sees high likelihood of co being acquired; says that co's adviser, Qatalyst Partners, has "strong track record" of facilitating software M&A

** Co was exploring a potential sale, after receiving acquisition interest, Reuters said on Friday, citing people familiar with the matter

** Shares jumped about 7% on Friday, in their biggest one-day gain since April 9

** Macro headwinds resulted in significant deceleration, so stock is trading at a low multiple; co could be acquired at higher multiple - TD Cowen

** Average rating of 11 analysts on stock is a "buy", median PT at $20 - LSEG

** Stock down nearly 14% YTD, up to last close

 (Reporting by Purvi Agarwal in Bengaluru)

 ((Purvi.Agarwal@thomsonreuters.com;))