Dynatrace initiated with bullish view at Scotiabank, here’s why

Scotiabank analyst Patrick Colville initiated coverage of Dynatrace with an Outperform rating and $62 price target. Dynatrace is viewed by many investors as “legacy” simply because it has been around for so long, but the company’s transition is “very much in the rear-view mirror,” says the analyst, who adds “we really like what we see out in front.” DPS and Grail should support NRR and help squeeze out point-product peers and the firm sees “a beat/raise story” for FY24 with “the path of least resistance higher for Dynatrace shares.”