Analyst Keith Bachman from BMO Capital maintained a Buy rating on Dynatrace and keeping the price target at $45.00.
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Keith Bachman has given his Buy rating due to a combination of factors related to Dynatrace’s growth, profitability, and market position. He views management’s FY27 net new ARR outlook as a key catalyst that could ease current investor worries about the durability of growth, especially if guidance comes in at a reasonably healthy level versus FY26.
He also expects net revenue retention to improve as a larger base of DPS customers renews, given their higher product adoption and expansion tendencies. In addition, he anticipates operating margins to remain solid and roughly flat despite increased R&D spending, and he believes the current valuation, at roughly 17x FY27 free cash flow, does not fully reflect potential acceleration in ARR growth within a favorable observability and monitoring market backdrop.
According to TipRanks, Bachman is a 4-star analyst with an average return of 3.2% and a 46.34% success rate. Bachman covers the Technology sector, focusing on stocks such as Okta, Adobe, and Cognizant.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $51.00 price target.