DA Davidson reiterates Buy rating on Dynatrace stock with $65 price target

Published 05/08/2025, 16:24
DA Davidson reiterates Buy rating on Dynatrace stock with $65 price target

Investing.com - DA Davidson has reiterated its Buy rating and $65.00 price target on Dynatrace Inc. (NYSE:DT), currently trading at $51.35, ahead of the company’s first-quarter fiscal 2026 results, scheduled for August 6. The target represents a 26% upside from current levels, closely aligned with InvestingPro’s Fair Value calculation.

The research firm expressed optimism that Dynatrace will exceed quarterly expectations, citing the mission-critical nature of observability solutions and improved foreign exchange trends. The company’s impressive 81.93% gross profit margin and 18.75% revenue growth over the last twelve months support this positive outlook.

DA Davidson noted that its developer data indicates a favorable start to fiscal year 2026 for Dynatrace, suggesting positive momentum for the company. InvestingPro analysis shows the company maintains a GOOD financial health score, with 8 additional key insights available to subscribers.

The firm anticipates that Dynatrace management will continue to provide prudent guidance for upcoming quarters, maintaining a conservative approach to forecasting.

Despite this expected caution from management, DA Davidson still sees potential upside to current consensus estimates for Dynatrace’s performance.

In other recent news, Dynatrace has opened its new corporate headquarters in Boston at Atlantic Wharf, a 32-story LEED Platinum-certified building recognized as the city’s first green skyscraper. In addition, the company’s board of directors has adopted a new majority voting standard for uncontested director elections, ensuring nominees are elected if they receive more votes in favor than against. On the financial front, Guggenheim has upgraded Dynatrace’s stock from Neutral to Buy, citing increased confidence in the company’s business momentum and setting a price target of $66.00. Stifel has reiterated its Buy rating with a $62.00 price target, noting the company’s shift towards an On-Demand-Consumption model and its resilience to macroeconomic impacts. Similarly, Truist Securities has maintained a Buy rating with a $70.00 price target, following discussions on Dynatrace’s platform strategy and its financial outlook. These developments reflect a period of strategic growth and positive analyst sentiment for Dynatrace.

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