Barclays upgrades Dynatrace with challenges behind the company

Barclays analyst Raimo Lenschow upgraded Dynatrace to Overweight from Equal Weight with a price target of $64, up from $52. Over the past few years, there have been a number of moving pieces investors have had to juggle in the Dynatrace story between Thoma Bravo selling down its stake, the company launching its next generation product offerings, and most recently Dynatrace adjusting its sales organization to better sell the larger solution set, the analyst tells investors in a research note. With these changes now behind the company, combined with the “much easier” competitive set-up, Dynatrace is on a path to offering “solid growth from here,” paired with continued ongoing margin expansion, the analyst tells investors in a research note.