Dynatrace (DT – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Brent Thill from Jefferies maintained a Buy rating on the stock and has a $70.00 price target.
Brent Thill’s Buy rating for Dynatrace (DT) is predicated on a number of key observations and projections. Despite a conservative adjustment in the fiscal year 2024 Annual Recurring Revenue (ARR) guidance due to the cautious timing of closing larger strategic deals, Thill recognizes robust growth indicators. He notes that the number of deals over $1 million in Annual Contract Value (ACV) increased significantly by 39% year over year, and the pipeline’s growth outpaced that of ARR, signaling underlying strength in the business.
Furthermore, Thill maintains an optimistic long-term view on the company’s prospects, seeing the current dip as a potential short-term volatility rather than a long-term concern. The valuation of Dynatrace’s shares at 34 times the projected CY25 Free Cash Flow (FCF) also appears attractive to him, especially when compared to the stock’s peers, which trade at a substantial premium. This assessment, coupled with the enduring potential he sees in the company’s future, underpins his recommendation to maintain a Buy position with a $70 price target.
According to TipRanks, Thill is an analyst with an average return of -1.8% and a 46.49% success rate. Thill covers the Technology sector, focusing on stocks such as Microsoft, Adobe, and Salesforce.
See the top stocks recommended by analysts >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Dynatrace (DT) Company Description:
Dynatrace, Inc. offers software intelligence platform, purpose-built for the enterprise cloud. The firm’s platform utilizes artificial intelligence at its core and advanced automation to provide answers, not just data, about the performance of applications, the underlying hybrid cloud infrastructure, and the experience of the customers’ users. It specializes in cloud ecosystem integration, incident and alert management integration, DevOps CI/CD integration, user experience and business intelligence insights. The company was founded in 2014 and is headquartered in Waltham, MA.
Read More on DT:
