Dynatrace Upgraded by Barclays with 10% Upside Forecast

A recent report indicates Barclays has upgraded Dynatrace's outlook from Equal-Weight to Overweight, projecting a 10.38% increase in share price. Additionally, projected revenue growth of 11.97% for the company adds a positive angle for investors.

Date: 08-10-2024

AI Rating: 7

The report provides a positive outlook for Dynatrace (DT), mentioning an upgrade from Barclays. The key factors influencing this outlook include:

Analyst Price Forecast: Barclays's upgrade suggests a potential increase of 10.38% in share price, with an average one-year target of $58.95 per share.
Projected Annual Revenue Growth: The report notes a projected annual revenue of $1,676 million, reflecting an increase of 11.97%, which indicates strong demand and business performance.
EPS Information: The projected annual non-GAAP Earnings Per Share (EPS) is 1.21, indicating potential profitability that can positively impact investor sentiment.
Institutional Ownership Sentiment: There has been a 1.36% increase in the number of funds or institutions reporting positions in Dynatrace, with total shares owned by institutions rising 4.18% over the last three months, which can signify positive investor sentiment.
Put/Call Ratio: A put/call ratio of 0.60 indicates a bullish sentiment among options traders, suggesting a favorable outlook for the stock in the short term.
Portfolio Adjustments by Funds: Notably, Price T Rowe Associates has decreased its stake, but other funds like Janus Henderson Group have increased their holdings, indicating varied strategies among large investors.

This array of positive indicators suggests a strong potential for Dynatrace's stock price to respond favorably in the near future. The combination of revenue growth, EPS projections, and overall fund sentiment creates a conducive environment for investors considering this stock.

Stocks: DT