15 Best Small Cap Stocks to Buy According to Wall Street

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7. PagerDuty, Inc. (NYSE:PD)

Market capitalization: $637M

Potential upside: 86.57%

Number of Hedge Fund Holders: 33

On February 11, 2026, RBC Capital analyst Matthew Hedberg lowered his price target on PagerDuty, Inc. (NYSE:PD) to $9 from $15 and maintained a Sector Perform rating as part of a broader fourth-quarter software earnings preview. The firm said negative investor sentiment toward software continues to weigh on the group and noted a preference for companies with a clearer path to AI monetization and consolidation across cyber, data, and infrastructure, and vertical SaaS. RBC also said it is updating price target models to reflect significant year-to-date multiple compression.

Earlier, on February 5, 2026, Truist reduced its price target to $12 from $16 and kept a Buy rating in a broader note on Infrastructure Software names. The firm said the sector pullback is being driven more by concerns around terminal value than near-term fundamentals, making AI narratives increasingly important. Truist added that vendors relying primarily on seat-based models were among the worst performers in 2025 and have continued to lag early in 2026, and said it sees traction in AI use cases and a shift away from seat-based deployments as key strategic priorities.

PagerDuty, Inc. (NYSE:PD) operates a digital operations management platform that collects and processes data from software-enabled systems and devices, using machine learning to correlate and predict incidents and opportunities.

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