Dynatrace price target raised to $55 from $45 at Loop Capital

Loop Capital analyst Yun Kim raised the firm’s price target on Dynatrace (DT) to $55 from $45 and keeps a Hold rating on the shares after its Q2 earnings beat. With the total annual recurring revenue growth stabilizing at around 19%-20% y/y over the past three quarters, investors are becoming more comfortable with the elevated execution risks related to the transition in the company’s sales organization and elongated sales cycle due to increasing deal size, the analyst tells investors in a research note. There were also some early renewals in the quarter as the company’s 6-month sales comp cycle encourages sales transactions in the first half of the year, Loop added.