2023-04-09 21:54:30 ET
Summary
- Dynatrace is a leader in APM with a highly differentiated AI-enabled software platform.
- Dynatrace has broadened its opportunity set beyond APM to include Infrastructure Monitoring, Application Security, and Log Analytics.
- The company has a strong financial model with +30% y/y revenue growth and ~80% gross margins.
- I initiate a buy rating on DT stock and keep a December 2023 price target of $56 based on a forward ~12x EV/Sales multiple and FY2024 revenue estimate of $1.3 billion.
For further details see:
Dynatrace: Differentiated Platform Driving Strong Growth