Analysts at Guggenheim started coverage on Dynatrace (NYSE:DT) and gave the stock a Buy rating with a price target of $58.00.
The analysts noted that Dynatrace is a prominent name in the observability sector, consistently showcasing its capability to evolve and introduce new features. The company’s recent tech developments and adjustments in its licensing indicate this commitment to innovation. Despite some market studies suggesting little difference between Dynatrace and its competitors, on-the-ground discussions point out the advanced nature of its Davis AI engine as a distinguishing feature, especially for major corporations.
The competition seems to be milder in the higher-end segment where Dynatrace operates, as they are one among a few that can effectively cater to the demands of large-scale businesses. Although, like many of its peers, Dynatrace has experienced challenges due to economic fluctuations, the analysts believe there’s a credible trajectory for more than 20% ARR growth in the foreseeable future.