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PagerDuty Surges 16% on Takeover Reports

PagerDuty Surges 16% on Takeover Reports Jan. 10, 2024, 7:18 p.m., readers: 31

PagerDuty (NYSE:PD) shares saw an increase of over 16% today following a Bloomberg News report that the software company is considering various options in light of interest from private equity firms for a potential takeover. This rise in share price reflects the positive sentiment of investors, indicating their anticipation and the possibilities that a takeover or similar strategic moves might bring. RBC analysts maintained an Outperform rating for PD stock, with a target price of $31 per share. They noted that while there is no concrete information about an impending deal, PagerDuty has always been considered a potential candidate for mergers and acquisitions (M&A;). This viewpoint was included in their 2024 software outlook earlier in the week. The analysts also mentioned that the overall software M&A; activity is expected to pick up pace in 2024, following a relatively slow year in 2023. They further speculated that the interest in PagerDuty might not only come from private equity firms but also from strategic buyers.