Should You Buy Dynatrace Inc (DT) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
40.670
1 Day change
-1.24%
52 Week Range
63.000
Analysis Updated At
2026/01/25
Dynatrace Inc (DT) is not a strong buy at the moment for a beginner investor with a long-term focus. While the company demonstrates solid financial growth and positive industry recognition, the technical indicators suggest a bearish trend, and there is no immediate positive trading signal. Additionally, hedge fund selling and lowered price targets by analysts indicate cautious sentiment. It would be prudent to hold off on purchasing until clearer upward momentum or stronger buy signals emerge.
Technical Analysis
The technical indicators show a bearish trend. The MACD is below 0 and negatively contracting, RSI is neutral at 49.743, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock price is currently near its pivot point of 40.722, with key resistance levels at 42.498 and 43.596, and support levels at 38.946 and 37.848.
Options Data
Bullish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Moving Average Consensus
Sell
8
Buy
3
Positive Catalysts
2026/01/25 23:32:55
Dynatrace has been recognized as a Leader in the Magic Quadrant for Observability Platforms for the 15th consecutive time.
Strong customer satisfaction with a 4.7/5.0 rating and 93% user recommendation in the Gartner Peer Insights report.
Financial performance in Q2 2026 shows strong revenue growth (18.11% YoY), net income growth (30.07% YoY), and EPS growth (26.67% YoY).
Neutral/Negative Catalysts
2026/01/25 23:32:55
Hedge funds are selling, with a 338.51% increase in selling activity over the last quarter.
Analysts have lowered price targets, citing cautious sentiment regarding AI monetization and sector valuation.
Technical indicators suggest a bearish trend, with no immediate upward momentum.
Financial Performance
In Q2 2026, Dynatrace reported revenue of $493.85M (up 18.11% YoY), net income of $57.24M (up 30.07% YoY), EPS of 0.19 (up 26.67% YoY), and a gross margin of 81.82% (up 1.96% YoY).
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts maintain a generally positive outlook on Dynatrace with multiple Buy ratings, but price targets have been lowered recently. Analysts expect AI monetization to drive growth, but concerns about sector valuation and cautious guidance for large deal closures persist.
Wall Street analysts forecast DT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DT is 59.12 USD with a low forecast of 50 USD and a high forecast of 67 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
Wall Street analysts forecast DT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DT is 59.12 USD with a low forecast of 50 USD and a high forecast of 67 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 41.180
Low
50
Averages
59.12
High
67
Current: 41.180
Low
50
Averages
59.12
High
67
TD Cowen
Andrew Sherman
Buy
downgrade
$65 -> $55
AI Analysis
2026-01-21
Reason
TD Cowen
Andrew Sherman
Price Target
$65 -> $55
AI Analysis
2026-01-21
downgrade
Buy
Reason
TD Cowen analyst Andrew Sherman lowered the firm's price target on Dynatrace to $55 from $65 and keeps a Buy rating on the shares. The firm said they expect a beat and raise to cc ARR and they think 2H NNARR guide is de-risked.
Citi
Fatima Boolani
Buy
downgrade
$64 -> $60
2026-01-16
Reason
Citi
Fatima Boolani
Price Target
$64 -> $60
2026-01-16
downgrade
Buy
Reason
Citi analyst Fatima Boolani lowered the firm's price target on Dynatrace to $60 from $64 and keeps a Buy rating on the shares. Citi also added an "upside 90-day short-term view" on Dynatrace. The firm sees infrastructure software momentum carrying into 2026.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for DT
