The Analyst Verdict: Dynatrace In The Eyes Of 15 Experts

In the preceding three months, 15 analysts have released ratings for Dynatrace DT, presenting a wide array of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $66.67, along with a high estimate of $70.00 and a low estimate of $60.00. This upward trend is evident, with the current average reflecting a 10.51% increase from the previous average price target of $60.33.

Deciphering Analyst Ratings: An In-Depth Analysis

The perception of Dynatrace by financial experts is analyzed through recent analyst actions. The following summary presents 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: Analysts provide insights into price targets, offering estimates for the future value of Dynatrace's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Dynatrace's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Dynatrace analyst ratings.

Discovering Dynatrace: A Closer Look

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.

Dynatrace: A Financial Overview

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Dynatrace showcased positive performance, achieving a revenue growth rate of 22.74% as of 31 December, 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 net margin is impressive, surpassing industry averages. With a net margin of 11.69%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Dynatrace's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.3%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Dynatrace's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.48%, the company may face hurdles in achieving optimal financial returns.

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.

Analyst Ratings: What Are They?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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