Dynatrace: Wells Fargo initiates coverage at Overweight, sets price target at $65.

Dynatrace: Wells Fargo initiates coverage at Overweight, sets price target at $65.

Wells Fargo has initiated coverage on Dynatrace Inc. (NYSE:DT) with an overweight rating and a price target of $65. The investment bank's analysts have expressed confidence in the company's growth prospects, driven by strong earnings reports and increasing institutional investor interest. Dynatrace reported a 19.5% year-over-year revenue increase in the most recent quarter, totaling $477.35 million, and earnings per share (EPS) that beat analysts' estimates at $0.42. The company's return on equity was 9.15% and net margin was 27.75%.

Several large investors have significantly increased their holdings in Dynatrace. UBS Asset Management grew its stake by 79.4% during the first quarter, while Ameriprise Financial increased its holdings by 146.4%. Nuveen LLC, Goldman Sachs Group, and Congress Asset Management Co. also expanded their positions, with increases of 14.7%, 53.2%, and 53.2%, respectively. Hedge funds and institutional investors own 94.28% of the company's stock.

Dynatrace's stock has been trading within a range of $39.30 to $63.00 over the past year, with a current market capitalization of $14.87 billion. The company's PE ratio is 30.25, and its PEG ratio is 4.35. The business has a 50-day moving average of $49.74 and a 200-day moving average of $50.26. Analysts predict that Dynatrace will post $0.68 EPS for the current fiscal year.

Wells Fargo's positive outlook on Dynatrace comes amidst a broader trend of increased institutional investor interest in the company. Other major investors, such as Guggenheim, KeyCorp, BMO Capital Markets, Rosenblatt Securities, and Royal Bank of Canada, have also expressed bullish views on the stock. However, despite the positive sentiment, some analysts believe there are better investment opportunities available.