Canaccord Genuity analyst Kingsley Crane maintained a Buy rating on Dynatrace (DT – Research Report) yesterday and set a price target of $65.00.
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Kingsley Crane’s rating is based on multiple considerations surrounding Dynatrace’s recent performance and potential. The analyst attended Dynatrace’s Perform conference, which highlighted the company’s success in attracting a diverse range of attendees, including a notable increase in developers, aligning with Dynatrace’s strategy to broaden its user base. This strategic approach to expand its market presence and user demographics is seen as a positive factor for future growth.
Furthermore, Crane notes the impact of Dynatrace’s DPS pricing model, which is leading to increased on-demand consumption and suggests that traditional financial metrics might underestimate the company’s revenue potential. Despite some concerns about the visibility in this model, the analyst believes there is room for upside, especially if customer consumption exceeds expectations. Additionally, while there was a lighter turnout in partner presence than anticipated, the overall contributions from partners remain strong, with confidence in the company’s go-to-market strategies and alignment across product, sales, and marketing. This overall positive outlook supports Crane’s Buy rating for Dynatrace.
In another report released today, Barclays also maintained a Buy rating on the stock with a $67.00 price target.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DT in relation to earlier this year.