DT - Dynatrace's Near-Term Prospects: Growth Vs. Valuation (Rating Downgrade)
2024-03-22 16:41:14 ET
Summary
- Dynatrace, Inc.'s growth prospects appear promising, with an anticipated 22% compound annual growth rate in the upcoming fiscal year.
- However, I am concerned about the company's valuation, which stands at 31x forward non-GAAP operating profits, suggesting a lack of sufficient margin of safety.
- As I evaluate Dynatrace's near-term outlook, I must carefully weigh the potential upside against the already priced-in expectations, leading me to downgrade this stock to a hold.
Investment Thesis
In simple terms, Dynatrace, Inc. ( DT ) detects issues, optimizes performance, and minimizes downtime for applications....
Dynatrace's Near-Term Prospects: Growth Vs. Valuation (Rating Downgrade)