PagerDuty, Inc. (PD) shares tumbled 7.11% in pre-market trading on Friday, following a wave of price target cuts from several Wall Street analysts. The cloud computing company, which specializes in digital operations management, faced downward revisions in its stock valuation from multiple financial institutions.

Leading the charge, JP Morgan reduced its target price for PagerDuty from $21 to $18, while maintaining a Sell rating on the stock. Other notable adjustments included TD Cowen lowering its target from $18 to $17, RBC Capital Markets cutting its projection to $20 from $22, and Bank of America Global Research decreasing its price objective to $15 from $16. Truist Securities also joined the trend, reducing its target price to $23 from $26.

The collective downgrades suggest growing concerns about PagerDuty's near-term growth prospects and valuation. While specific reasons for these revisions were not explicitly stated, such widespread adjustments often reflect changing market conditions, competitive pressures, or shifts in company outlook. Investors appear to be reacting negatively to this wave of analyst pessimism, driving the stock's significant pre-market decline. As the trading session progresses, it remains to be seen how PagerDuty will navigate these challenges and respond to the dampened market sentiment.