Dynatrace’s platform strategy building strong momentum, says DA Davidson

DA Davidson keeps a Buy rating and $65 price target on Dynatrace after its Q4 earnings beat. The results were better than expected results across the board as the company benefits from tooling consolidation around their platform, the analyst tells investors in a research note. While there’s resiliency within the observability market in the near-term however, Dynatrace management also noted that they’re assuming continued caution within the software spend environment, resulting in lighter Q1 and FY25 guidance than was expected, the firm added.