Dynatrace (DT – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Andrew Sherman from TD Cowen reiterated a Buy rating on the stock and has a $65.00 price target.
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Andrew Sherman has given his Buy rating due to a combination of factors that highlight Dynatrace’s promising outlook. The company’s annual recurring revenue (ARR) growth and subscription growth have exceeded expectations, indicating strong performance. Additionally, the go-to-market changes are showing positive progress, with a focus on driving consumption and increasing sales productivity. The pipeline growth and partner efforts are also contributing to the company’s success, with a significant portion of annual contract value being influenced by partners.
Moreover, the adoption of the Dynatrace Platform Subscription (DPS) is increasing, with a substantial percentage of customers and ARR now on DPS, leading to higher consumption and expansion rates. The sales compensation changes align with the company’s strategy to boost consumption and bookings. Despite a conservative outlook, management’s expectations for sales productivity gains and the absence of macroeconomic impacts further support the positive sentiment. Overall, the valuation remains attractive, prompting a reiteration of the Buy rating and an increased price target.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $60.00 price target.