Dynatrace Receives Upgrade to Buy Rating from Guggenheim

Dynatrace has been upgraded to Buy from Neutral by Guggenheim, with a $66 price target. Analysts led by Howard Ma cite increased confidence in key business catalysts gaining momentum and a favorable model setup.

Dynatrace Inc. (NYSE:DT) has been upgraded to a "Buy" rating by Guggenheim, with a new price target of $66, according to a report released on July 23, 2025. The equities research analysts at Guggenheim, led by Howard Ma, cited increased confidence in key business catalysts gaining momentum and a favorable model setup as the primary reasons for the upgrade.

Guggenheim's channel checks indicate that there has been increased usage of Application Performance Monitoring (APM) and consolidation of observability tools onto Dynatrace’s platform, including log management. These developments are collectively driving overages and sizable early renewals, which support the firm's subscription revenue growth estimate of at least 17% constant currency (CC) for fiscal year 2026, compared to the company’s guidance of 14-15% growth.

The analysts believe that this growth is achievable assuming approximately 10% year-over-year Net New ARR growth versus guidance implying a 4% decline, along with about $50M in On-Demand Consumption (ODC) revenue versus guidance of $30M. Additionally, a solid start to the year with better-than-usual April seasonality and incremental guidance conservatism could yield further upside.

Other recent news highlights Dynatrace’s strong fourth-quarter fiscal year 2025 results, with a 1% increase in Annual Recurring Revenue (ARR) and a 3% rise in Subscription Revenue, both exceeding consensus estimates. Goldman Sachs and Truist Securities have also raised their price targets for Dynatrace, citing the company’s improved operational and free cash flow margins.

Dynatrace has also made significant corporate developments, such as opening its new corporate headquarters in Boston and adopting a new majority voting standard for director elections, further strengthening its market position and operational framework.

References:
[1] https://www.marketbeat.com/instant-alerts/dynatrace-nysedt-upgraded-at-guggenheim-2025-07-23/
[2] https://www.investing.com/news/analyst-ratings/guggenheim-upgrades-dynatrace-stock-to-buy-on-observability-momentum-93CH-4147229
[3] https://seekingalpha.com/news/4470540-dynatrace-gets-rating-upgrade-at-guggenheim