Pagerduty Stock Fair Value – BofA Gives PagerDuty a Buy Rating, Citing Attractive Risk-Reward Profile
December 16, 2023
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PAGERDUTY ($NYSE:PD): PagerDuty Inc., a leading incident resolution and automation platform, has recently received a Buy rating from Bank of America, citing an attractive risk-reward profile. PagerDuty is an American technology company that offers cloud-based software and services used by operations teams to prevent, detect, and resolve infrastructure incidents. It enables reliable digital operations through its incident resolution and automation technology, delivered as part of an end-to-end SaaS platform. The company’s risk-reward profile was seen as particularly attractive by Bank of America, which noted that PagerDuty has a strong balance sheet, a growing customer base, and an impressive product suite.
Bank of America believes that these factors will help drive growth in the company’s stock price. With its expanding product suite, attractive risk-reward profile, and strong customer base, it’s no wonder that Bank of America gave PagerDuty a Buy rating.
Stock Price
Bank of America has given PAGERDUTY a buy rating, citing its attractive risk-reward profile. On Thursday, PAGERDUTY stock opened at $23.0 and closed at $23.3, up by 3.7% from its last closing price of 22.4. The stock has proven to be relatively resilient during times of market volatility and is currently trading around its all-time high. With analysts expecting the company to continue to see strong growth in the coming quarters, Bank of America believes now is an attractive time for investors to take advantage of the risk-reward profile offered by PAGERDUTY. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Pagerduty. More…
| Total Revenues | Net Income | Net Margin |
| 420.55 | -75.69 | -17.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Pagerduty. More…
| Operations | Investing | Financing |
| 67.39 | 0.98 | 53.33 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Pagerduty. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 886.73 | 712.14 | 1.81 |
Key Ratios Snapshot
Some of the financial key ratios for Pagerduty are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 28.1% | – | -16.2% |
| FCF Margin | ROE | ROA |
| 14.8% | -19.6% | -4.8% |
Analysis – Pagerduty Stock Fair Value
At GoodWhale, we have taken a deep dive into analyzing PAGERDUTY‘s financials. After careful consideration and detailed analysis, our proprietary Valuation Line indicates an intrinsic value of around $42.3 per share. Interestingly, PAGERDUTY’s stock is currently trading at $23.3, which is 44.9% below its intrinsic value. This suggests that the stock is currently undervalued, opening up potential opportunities for investors. More…
Peers
Its competitors are Easy Software AG, NICE Ltd, and IMINT Image Intelligence AB.
– Easy Software AG ($LTS:0EDB)
The company’s market cap is 88.25M as of 2022 and its ROE is -21.16%. The company is involved in the development, marketing and sales of software products and services. Its products are used by businesses of all sizes, from small businesses to large enterprises.
– NICE Ltd ($BER:NSY)
NICE Ltd is a publicly traded company with a market capitalization of 12.22B as of 2022. The company has a return on equity of 6.6%. NICE Ltd is a provider of enterprise software solutions. The company’s products and services include customer experience management, financial crime and compliance, and operations management.
– IMINT Image Intelligence AB ($LTS:0GCH)
Image Intelligence AB is a Swedish company that specializes in image processing and analysis. The company has a market cap of 187.27M as of 2022 and a Return on Equity of 13.01%. Image Intelligence AB’s main products are software tools for image analysis, which are used in a variety of applications such as medical imaging, security, and surveillance.
Summary
BofA has recently given PagerDuty a Buy rating, citing its attractive risk-reward profile. This boosted investor confidence, and the stock price rose the same day. Investors may find the company’s current valuation attractive due to its robust growth potential in the long term. PagerDuty is a cloud-based platform offering incident management and incident response solutions to organizations, helping them automate their response to events that may disrupt their operations.
The company’s revenues have grown steadily, driven by increased customer adoption and a strong focus on product innovation. It is well-positioned to benefit from the shift to digital business operations and adoption of cloud services. With strong financials and high customer retention rates, PagerDuty is set to continue delivering strong performance in the long run.
