Andrew Sherman, an analyst from TD Cowen, maintained the Buy rating on Dynatrace. The associated price target remains the same with $65.00.
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Andrew Sherman has given his Buy rating due to a combination of factors including Dynatrace’s strong performance and strategic initiatives. The company has shown impressive growth in its net new annual recurring revenue (ARR), surpassing expectations and raising its full-year ARR guidance. Management’s focus on accelerating growth in net new ARR is expected to drive overall ARR growth, with a significant portion of future ARR driven by customer expansions and new logos.
Additionally, Dynatrace’s management has de-risked its guidance for the second half of the year, indicating healthy demand and robust pipelines. The company’s go-to-market changes have resulted in positive developments, such as increased large deal volume and improved visibility in forecasting. These factors, combined with the company’s attractive valuation, contribute to a favorable risk/reward profile, supporting Sherman’s Buy rating.
In another report released on November 6, Truist Financial also maintained a Buy rating on the stock with a $60.00 price target.