PagerDuty (NYSE:PD) shares saw an increase of over 16% today following a Bloomberg News report that the software company is considering various options in light of interest from private equity firms for a potential takeover. This rise in share price reflects the positive sentiment of investors, indicating their anticipation and the possibilities that a takeover or similar strategic moves might bring.

RBC analysts maintained an Outperform rating for PD stock, with a target price of $31 per share. They noted that while there is no concrete information about an impending deal, PagerDuty has always been considered a potential candidate for mergers and acquisitions (M&A). This viewpoint was included in their 2024 software outlook earlier in the week.

The analysts also mentioned that the overall software M&A activity is expected to pick up pace in 2024, following a relatively slow year in 2023. They further speculated that the interest in PagerDuty might not only come from private equity firms but also from strategic buyers.