TD Cowen analyst Andrew Sherman has maintained their bullish stance on DT stock, giving a Buy rating on January 19.
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Andrew Sherman has given his Buy rating due to a combination of factors that point to durable growth and de-risked expectations. He anticipates Dynatrace will again outperform guidance on annual recurring revenue and believes management’s outlook for the second half of the year is conservative, creating room for upside. Sherman highlights strong underlying demand drivers, including consumption growth above 20%, rapid adoption of newer modules like Logs, and a steadily expanding pipeline of large strategic deals. Despite a reduction in the price target, he views the current valuation as attractive relative to long-term free cash flow and revenue multiples.
Sherman also emphasizes that recent go-to-market changes are gaining traction, as evidenced by improved large-deal activity, stronger partner engagement, and broad-based adoption of the company’s observability and data platforms. Management’s commentary around healthy demand conditions and multiple quarters of accelerating pipeline provide further confidence that net new ARR can stabilize and reaccelerate over time. Additionally, he expects Dynatrace to be a structural beneficiary of rising AI-driven workloads and complexity, which should increase the need for observability solutions. Taken together, these factors support his positive stance on the stock and underpin his Buy recommendation.
In another report released on January 19, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $45.00 price target.