William Blair analyst Jake Roberge has maintained their bullish stance on DT stock, giving a Buy rating today.
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Jake Roberge has given his Buy rating due to a combination of factors that highlight Dynatrace’s strong performance and future potential. The company reported a robust second-quarter performance, surpassing consensus expectations across key metrics. Although there was a slight dip in subscription revenue due to lower-than-expected ODC revenue, this was attributed to customers renewing early and increasing their ARR commitments. This shift is seen as a positive development, enhancing the visibility of ARR growth, which was further supported by recent changes in sales compensation that favor ARR over ODC dollars.
In addition, Dynatrace demonstrated impressive ARR growth, outperforming market expectations, and showed significant progress in its strategic account pipeline, which grew substantially year-over-year. The company’s efforts in platform consolidation and AI adoption have also been noteworthy, with a significant increase in customers utilizing these features. The continued expansion into logging workflows and the successful landing of an AI-native deal further underscore Dynatrace’s solid execution and its advantageous position to capitalize on emerging industry trends.
Roberge covers the Technology sector, focusing on stocks such as Jamf Holding, Dayforce Inc, and UiPath. According to TipRanks, Roberge has an average return of -3.5% and a 39.20% success rate on recommended stocks.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $60.00 price target.