In a report released today, Andrew Sherman from TD Cowen reiterated a Buy rating on Dynatrace, with a price target of $65.00.
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Andrew Sherman has given his Buy rating due to a combination of factors including Dynatrace’s strong financial performance and strategic growth initiatives. The company reported impressive annual recurring revenue (ARR) growth, surpassing expectations, and raised its full-year ARR guidance, which indicates a positive outlook for the future. Additionally, the management’s confidence in their pipeline and the execution of significant deals further supports this optimistic view.
Another contributing factor to the Buy rating is the company’s strategic partnerships and expansions. The collaboration with NOW is particularly noteworthy due to the potential for enhanced customer engagement and operational synergies. Furthermore, Dynatrace’s expansion in key markets, such as its largest new logo deal in the Asia-Pacific region, and its growing presence in the AI-native intelligence sector, highlight its competitive edge and potential for continued success. The attractive valuation metrics also reinforce the Buy recommendation.
Sherman covers the Technology sector, focusing on stocks such as Elastic, Dynatrace, and JFrog. According to TipRanks, Sherman has an average return of 11.1% and a 66.22% success rate on recommended stocks.