Shares of PagerDuty (NYSE: PD) were moving higher Friday after the software-as-a-service company got an analyst upgrade. As of 12:11 p.m. ET, the stock was up by 5.6%.

PagerDuty specializes in observability and monitoring software that notifies businesses of outages and other connectivity issues. On Friday morning, Morgan Stanley analyst Sanjit Singh raised his rating on the tech stock from equal weight to overweight.

Singh said he'd been hesitant to rate the stock a buy since its 2019 IPO due to its valuation, but the company has proven it can grow revenue consistently, and he expects it will be able to sustain 20% revenue growth over the next few years. He also said the company's subscription model has allowed it to improve its cost structure and will help it deliver a "strong pivot to profitability."

Continue reading

Source Fool.com