Beyond The Numbers: 6 Analysts Discuss Dynatrace Stock

Dynatrace DT underwent analysis by 6 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $62.5, a high estimate of $70.00, and a low estimate of $58.00. Witnessing a positive shift, the current average has risen by 13.64% from the previous average price target of $55.00.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Dynatrace among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Dynatrace. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Dynatrace compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Dynatrace's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Dynatrace's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Dynatrace analyst ratings.

All You Need to Know About Dynatrace

Dynatrace is a cloud-native company that focuses on analyzing machine data. Its product portfolio, delivered as software as a service, allows a client to monitor and analyze its entire IT infrastructure. Dynatrace's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to use it for a variety of applications throughout their businesses.

Key Indicators: Dynatrace's Financial Health

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Dynatrace showcased positive performance, achieving a revenue growth rate of 25.91% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Dynatrace's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 10.18%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.04%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Dynatrace's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.3%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.04, Dynatrace adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.