Dynatrace (NYSE:DT) Stock Price Expected to Rise, UBS Group Analyst Says

Key Points

• UBS raised Dynatrace’s price target to $65 from $60 and maintained a “buy” rating, implying roughly 34% upside from the reported $48.45 share price. The stock has a consensus “Moderate Buy” rating and an average target of $53.58.
• Dynatrace exceeded quarterly expectations, reporting adjusted EPS of $0.48 versus $0.45 expected and revenue of $554.55 million, up 16.3% year over year. Fiscal 2027 adjusted EPS guidance of $1.97–$1.99 is above the $1.78 analyst consensus.
• Shares fell 4.7% to $48.45 despite the strong results and positive analyst revisions. At approximately 90 times earnings, the stock’s elevated valuation leaves it vulnerable to growth or execution disappointments.

Dynatrace (NYSE:DT - Get Free Report) had its target price increased by investment analysts at UBS Group from $60.00 to $65.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. UBS Group's price target would indicate a potential upside of 34.16% from the company's current price.

DT has been the subject of several other reports. Canaccord Genuity Group set a $60.00 price objective on shares of Dynatrace in a report on Thursday. DA Davidson upped their target price on shares of Dynatrace from $45.00 to $60.00 and gave the company a "buy" rating in a research note on Wednesday, July 15th. Oppenheimer increased their price target on shares of Dynatrace from $45.00 to $55.00 and gave the stock an "outperform" rating in a research report on Monday, July 20th. KeyCorp lifted their price target on Dynatrace from $53.00 to $61.00 and gave the stock an "overweight" rating in a research note on Thursday. Finally, Scotiabank reissued an "outperform" rating and issued a $61.00 price objective on shares of Dynatrace in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $53.58.

Dynatrace Stock Down 4.7%

Shares of Dynatrace stock traded down $2.41 on Thursday, hitting $48.45. 4,975,881 shares of the company's stock traded hands, compared to its average volume of 6,327,413. The stock has a market cap of $14.06 billion, a P/E ratio of 89.64, a PEG ratio of 2.94 and a beta of 0.72. The firm's 50-day moving average is $43.21 and its 200 day moving average is $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 released its quarterly earnings results on Wednesday, August 5th. The company reported $0.48 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.03. The business had revenue of $554.55 million during the quarter, compared to the consensus estimate of $550.18 million. Dynatrace had a net margin of 8.06% and a return on equity of 10.37%. The business's quarterly revenue was up 16.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.42 earnings per share. Dynatrace has set its Q2 2027 guidance at 0.480-0.490 EPS and its FY 2027 guidance at 1.970-1.990 EPS. Equities research analysts forecast that Dynatrace will post 1.11 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. NewEdge Advisors LLC lifted its holdings in Dynatrace by 25.3% in the first quarter. NewEdge Advisors LLC now owns 9,135 shares of the company's stock worth $431,000 after acquiring an additional 1,846 shares during the last quarter. Jones Financial Companies Lllp grew its holdings in shares of Dynatrace by 19.2% during the first quarter. Jones Financial Companies Lllp now owns 2,161 shares of the company's stock valued at $102,000 after purchasing an additional 348 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Dynatrace by 21.3% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,548 shares of the company's stock valued at $85,000 after purchasing an additional 272 shares during the last quarter. Invesco Ltd. raised its position in shares of Dynatrace by 38.9% during the 2nd quarter. Invesco Ltd. now owns 793,630 shares of the company's stock worth $43,816,000 after purchasing an additional 222,395 shares during the period. Finally, Marshall Wace LLP acquired a new stake in shares of Dynatrace during the 2nd quarter worth approximately $410,000. 94.28% of the stock is currently owned by institutional investors.

Trending Headlines about Dynatrace

Here are the key news stories impacting Dynatrace this week:

• Positive Sentiment: Dynatrace reported adjusted earnings of $0.48 per share, above the $0.45 consensus estimate, while revenue of $554.55 million exceeded expectations of $550.18 million and increased 16.3% year over year. The company also highlighted 41% organic net new annual recurring revenue growth, supported by demand for cloud-native workloads and artificial-intelligence initiatives. Dynatrace Reports First Quarter Fiscal Year 2027 Financial Results
• Positive Sentiment: Full-year fiscal 2027 adjusted EPS guidance of $1.97-$1.99 is well above the $1.78 analyst consensus, suggesting improving profitability expectations. Second-quarter EPS guidance of $0.48-$0.49 also exceeds the $0.44 consensus. Dynatrace Q1 Earnings and Revenues Top Estimates
• Positive Sentiment: Analyst sentiment strengthened after the report. BTIG Research raised its price target from $47 to $62 and upgraded the stock to “buy,” while Royal Bank of Canada lifted its target from $50 to $59 and assigned an “outperform” rating. Rosenblatt Securities also issued a buy rating. Analyst price-target changes Rosenblatt Securities Buy Rating
• Neutral Sentiment: Management’s second-quarter revenue outlook of $565 million-$570 million is broadly in line with expectations, while full-year revenue guidance remains approximately $2.3 billion. This indicates continued growth but not a major near-term revenue forecast increase.
• Negative Sentiment: The company slightly reduced its fiscal 2027 revenue outlook, and second-quarter revenue guidance is just below the $570.1 million consensus. With Dynatrace trading at roughly 90 times earnings, the stock’s valuation leaves limited room for execution or growth disappointments.

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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