Dynatrace (DT – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst William Power from Robert W. Baird maintained a Buy rating on the stock and has a $60.00 price target.
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William Power has given his Buy rating due to a combination of factors including Dynatrace’s strong performance and strategic initiatives. The company has shown resilience against macroeconomic impacts and has incorporated a conservative outlook into its full-year guidance. Additionally, changes in the go-to-market strategy have been positively received, particularly with the growth in the Fortune 500 pipeline and the introduction of new incentive structures and strike teams focused on specific products.
Another key factor is the robust traction from DPS customers, who are consuming at twice the rate of non-DPS customers, and now make up a significant portion of the company’s ARR base. This growth is expected to drive further adoption of products like Logs, with management confident in surpassing previous targets. The positive outlook is further supported by Dynatrace’s solid innovation engine, industry-leading margins, and strong cash flow, alongside a subscription revenue growth forecast of 20% year-over-year. These elements contribute to the confidence in the company’s long-term potential and justify the Buy rating.
In another report released on June 10, KeyBanc also initiated coverage with a Buy rating on the stock with a $69.00 price target.
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