PagerDuty Inc. (NYSE:PD) is considered one of the best small cap tech stocks to invest in now. Truist lowered its price target for PagerDuty from $20 to $16, citing a market divide in AI winners and losers. RBC Capital downgraded PagerDuty to Sector Perform from Outperform with a reduced price target of $15 on January 5.

Truist highlighted a valuation gap for PagerDuty amid a market divide in AI winners and losers. The firm noted the challenges faced by seat-based business models and suggested potential for a rebound among underperformers. RBC Capital downgraded PagerDuty to Sector Perform from Outperform on January 5, citing ongoing pressure from the seat-based business model and limited margin expansion potential in the short term.

PagerDuty Inc. operates a digital operations management platform that collects data from software-enabled systems and devices. While PagerDuty shows investment potential, other AI stocks may offer greater upside potential and less downside risk. Investors seeking undervalued AI stocks can explore the best short-term AI stock in a free report.

For more insights on potential stock growth, check out “30 Stocks That Should Double in 3 Years” and “11 Hidden AI Stocks to Buy Right Now” on Insider Monkey’s website. No disclosures were made in the article originally published by Insider Monkey.

Read more at Yahoo Finance: Truist Highlights Valuation Gap for PagerDuty (PD) Amid AI Market Divide