Needham analyst Mike Cikos has maintained their neutral stance on DT stock, giving a Hold rating on February 6.
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Mike Cikos’s rating is based on several factors impacting Dynatrace’s current market position. Although there are positive signals from the On-Demand Consumption (ODC) revenue, with an increase noted in the recent quarter, there remains uncertainty in how ODC translates into committed spending. This uncertainty is largely due to assumptions around more favorable pricing as customers commit to larger contracts.
Furthermore, while the increase in ODC revenue suggests that the Dynatrace Platform Subscription (DPS) is encouraging higher customer spending, the overall impact on long-term commitments and revenue stability is still being evaluated. This cautious outlook, combined with the need for clarity on customer and investor expectations regarding unit pricing, contributes to the Hold rating.
Cikos covers the Technology sector, focusing on stocks such as Dynatrace, Okta, and Tenable Holdings. According to TipRanks, Cikos has an average return of 15.3% and a 61.66% success rate on recommended stocks.
In another report released on February 6, Morgan Stanley also maintained a Hold rating on the stock with a $62.00 price target.