PagerDuty, Inc. (NYSE:PD) is one of the 10 Most Undervalued Tech Stocks to Buy According to Analysts.

On March 13, BofA lowered its price target on PagerDuty, Inc. (NYSE:PD) to $6 from $12 while maintaining an Underperform rating following mixed fiscal Q4 results. Although the company exceeded expectations in the quarter, the firm cited concerns around a softer demand environment, multiple compressions across infrastructure software peers, and execution risks that could weigh on near-term sentiment.

The same day, Truist also reduced its price target on PagerDuty, Inc. (NYSE:PD) to $9 from $12 while maintaining a Buy rating, noting that PagerDuty delivered upside to both revenue and earnings guidance. However, the firm pointed to ongoing churn headwinds and a decline in dollar-based net retention below 100%, reflecting a transitional phase in the business as it works to stabilize growth and improve customer retention metrics.

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PagerDuty, Inc. (NYSE:PD) is a SaaS-based incident management platform that enables IT operations, DevOps, and security teams to manage and resolve digital incidents in real time. Its platform integrates AI-driven automation and analytics to improve system reliability and operational efficiency. Despite near-term challenges, PagerDuty’s mission-critical role in enterprise IT infrastructure, combined with its ongoing transition toward more efficient growth and improved retention, positions it as a potential turnaround opportunity with significant upside as execution stabilizes and demand for digital resilience solutions continues to expand.

While we acknowledge the potential of PD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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