Dynatrace price target lowered to $45 from $56 at BMO Capital

BMO Capital analyst Keith Bachman lowered the firm’s price target on Dynatrace (DT) to $45 from $56 and keeps an Outperform rating on the shares. In the context of turbulent software market, Dynatrace delivered upside across the board, including increasing March-quarter ARR guidance by about 125 basis points, the firm says. BMO believes Dynatrace’s complete observability value chain, led by Grail, is resonating with larger customers, even as competition gradually increases. The firm thinks valuation is compelling, but given compression in software valuations, BMO is lowering its price target on the shares.