Truist Highlights Valuation Gap for PagerDuty (PD) Amid AI Market Divide

Group 1 - PagerDuty Inc. is identified as a promising small-cap tech stock, despite recent price target reductions by Truist and RBC Capital [1][2] - Truist lowered its price target for PagerDuty from $20 to $16 while maintaining a Buy rating, highlighting a valuation gap in seat-based business models that may persist until 2026 [1] - RBC Capital downgraded PagerDuty to Sector Perform from Outperform and reduced its price target from $17 to $15, citing ongoing pressure from the company's seat-based business model and limited margin expansion potential [2] Group 2 - PagerDuty operates a digital operations management platform that utilizes machine learning to analyze data from various software-enabled systems and predict opportunities and incidents [3] - The incident management market is expected to undergo further consolidation, which may impact PagerDuty's business model [2] - There is a noted market divide between AI winners and losers, with some underperformers potentially positioned for a rebound [1]