Dynatrace (NYSE:DT) Price Target Raised to $65.00 at DA Davidson

Key Points

• DA Davidson raised Dynatrace’s price target to $65 from $60 and maintained a “buy” rating, implying approximately 33% upside from the reported share price. Analysts overall rate the stock “Moderate Buy,” with an average target of $53.77.
• Dynatrace exceeded quarterly expectations, reporting $0.48 EPS and $554.6 million in revenue, up 16.3% year over year. Fiscal 2027 EPS guidance of $1.97–$1.99 was also above consensus estimates.
• Shares fell 3.9% to $48.87 despite the strong results, while the stock’s valuation remains elevated at a P/E ratio above 90. Institutional investors hold approximately 94.3% of Dynatrace’s shares.

Dynatrace (NYSE:DT - Get Free Report) had its price objective boosted by DA Davidson from $60.00 to $65.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. DA Davidson's price objective would suggest a potential upside of 33.01% from the company's current price.

A number of other research firms also recently weighed in on DT. Jefferies Financial Group restated a "buy" rating on shares of Dynatrace in a research note on Wednesday. JPMorgan Chase & Co. dropped their price objective on shares of Dynatrace from $50.00 to $45.00 and set an "overweight" rating for the company in a research note on Thursday, May 14th. Royal Bank Of Canada increased their target price on Dynatrace from $50.00 to $59.00 and gave the stock an "outperform" rating in a report on Thursday. TD Cowen raised their price target on Dynatrace from $45.00 to $50.00 and gave the stock a "buy" rating in a research report on Wednesday, July 22nd. Finally, Needham & Company LLC reaffirmed a "hold" rating on shares of Dynatrace in a research note on Thursday, June 25th. One analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $53.77.

Dynatrace Trading Down 3.9%

Shares of Dynatrace stock traded down $1.99 during trading on Thursday, reaching $48.87. The stock had a trading volume of 9,790,961 shares, compared to its average volume of 6,362,185. The company has a market capitalization of $14.18 billion, a price-to-earnings ratio of 90.50, a P/E/G ratio of 2.94 and a beta of 0.72. The stock has a fifty day moving average price of $43.21 and a two-hundred day moving average price of $39.45. Dynatrace has a 52 week low of $31.64 and a 52 week high of $53.28.

Dynatrace (NYSE:DT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.45 by $0.03. Dynatrace had a return on equity of 10.37% and a net margin of 8.06%.The business had revenue of $554.55 million for the quarter, compared to analyst estimates of $550.18 million. During the same quarter last year, the firm earned $0.42 EPS. Dynatrace's revenue for the quarter was up 16.3% compared to the same quarter last year. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. On average, equities analysts forecast that Dynatrace will post 1.11 EPS for the current fiscal year.

Institutional Investors Weigh In On Dynatrace

A number of hedge funds and other institutional investors have recently bought and sold shares of DT. Pictet Asset Management Holding SA lifted its holdings in Dynatrace by 7.9% during the 1st quarter. Pictet Asset Management Holding SA now owns 15,809,223 shares of the company's stock worth $584,649,000 after buying an additional 1,160,690 shares during the period. State Street Corp raised its position in shares of Dynatrace by 1.0% during the fourth quarter. State Street Corp now owns 10,664,357 shares of the company's stock worth $462,193,000 after acquiring an additional 101,994 shares during the last quarter. Bank of America Corp DE raised its position in shares of Dynatrace by 304.7% during the first quarter. Bank of America Corp DE now owns 9,357,612 shares of the company's stock worth $346,044,000 after acquiring an additional 7,045,591 shares during the last quarter. Wellington Management Group LLP lifted its stake in shares of Dynatrace by 9.0% in the fourth quarter. Wellington Management Group LLP now owns 7,999,919 shares of the company's stock worth $346,716,000 after acquiring an additional 659,792 shares during the period. Finally, First Trust Advisors LP boosted its holdings in Dynatrace by 706.8% in the first quarter. First Trust Advisors LP now owns 6,801,507 shares of the company's stock valued at $251,520,000 after acquiring an additional 5,958,505 shares during the last quarter. Institutional investors own 94.28% of the company's stock.

Dynatrace News Summary

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Quarterly results exceeded expectations. Dynatrace reported fiscal first-quarter EPS of $0.48, above the $0.45 consensus estimate, while revenue increased 16.3% year over year to $554.6 million, topping expectations of approximately $550.2 million. Dynatrace Reports First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Subscription and customer momentum remained strong. Annual recurring revenue rose 17%, net new ARR increased 66% according to Zacks, and management highlighted 41% organic net new ARR growth and larger new-logo wins. The results suggest improving demand for Dynatrace’s observability platform as enterprises expand cloud workloads and artificial-intelligence initiatives. Dynatrace Q1 Earnings Beat on ARR Growth and Strong New-Logo Wins
• Positive Sentiment: Profit guidance was better than expected. Fiscal 2027 EPS guidance of $1.97–$1.99 exceeds the $1.78 analyst consensus, while second-quarter EPS guidance of $0.48–$0.49 is above the $0.44 consensus. UBS raised its price target to $65 and initiated a buy rating; RBC raised its target to $59 and assigned an outperform rating. BTIG also raised its target to $62 and issued a buy rating.
• Neutral Sentiment: Revenue guidance was less compelling. Fiscal-year revenue guidance was broadly in line with consensus, while second-quarter revenue guidance of $565 million–$570 million was slightly below the approximately $570.1 million estimate. Dynatrace Q1 Earnings and CFO Transition
• Negative Sentiment: Leadership changes could create near-term uncertainty. Dynatrace announced a CFO transition alongside the earnings release. Investors may also be cautious because the stock trades at a high valuation, with a reported P/E ratio above 90, making it sensitive to any slowdown in growth or guidance concerns.

About Dynatrace

Dynatrace is a global software intelligence company specializing in application performance management (APM), cloud infrastructure monitoring, and digital experience management. Its flagship offering, the Dynatrace Software Intelligence Platform, leverages artificial intelligence to provide real-time observability across distributed environments, including on-premises data centers, private clouds, public clouds and hybrid deployments. Organizations rely on Dynatrace to detect anomalies, troubleshoot performance issues and optimize end-user experiences through automated root-cause analysis powered by the company's engine, Davis.

The Dynatrace platform comprises modules for full-stack application monitoring, digital experience monitoring, infrastructure monitoring and business analytics.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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