Analyst Andrew Sherman of TD Cowen maintained a Buy rating on Dynatrace (DT – Research Report), reducing the price target to $55.00.
Andrew Sherman has given his Buy rating due to a combination of factors that highlight Dynatrace’s promising growth trajectory and strong market position. Despite a reduction in the price target from $67 to $55, Sherman anticipates slight upside in both Annual Recurring Revenue (ARR) and subscription revenues, driven by the company’s on-demand consumption dynamics. This is supported by Dynatrace’s solid performance in the previous quarter, where ARR growth exceeded expectations.
Moreover, Sherman notes that Dynatrace’s valuation is at an all-time low, trading at 23 times the enterprise value to free cash flow estimate for the calendar year 2026. The company is also expected to maintain healthy operating margins, contributing to a robust Rule of 40 score. Additionally, positive feedback from recent conferences and management’s confidence in the absence of macroeconomic impacts further bolster the Buy rating, as these factors suggest continued demand and potential for ARR growth in the future.
In another report released on April 14, D.A. Davidson also maintained a Buy rating on the stock with a $52.00 price target.
Based on the recent corporate insider activity of 80 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DT in relation to earlier this year.