Dynatrace price target raised to $50 from $45 at Wells Fargo

Wells Fargo analyst Andrew Nowinski raised the firm’s price target on Dynatrace to $50 from $45 and keeps an Overweight rating on the shares. The analyst also included Dynatrace on his firm’s Tactical Ideas list for Q1 2023 as he believes company-specific catalysts should drive stock outperformance during the quarter. Shares currently trade at a modest premium to the peer group, largely attributable to the deceleration in revenue growth over the past seven quarters. However, Nowinski believes revenue growth is set to "bottom out" in Q4 2023 at +15% year-over-year and reaccelerate in Q1 2024. In addition, the company is hosting a user conference and Analyst Day on Feb. 15-16, which could serve as a positive catalyst for the stock, the analyst argues. While he does not expect a financial update at this event, it will enable management to discuss the key product growth drivers that should help reaccelerate revenue growth above the peer group average of 22% in the back half of 2023.