Dynatrace Inc. shares rose 2.7% in pre-market trading on Wednesday, approaching $50.35 and nearing the upper end of its 52-week range between $31.64 and $53.28.
The gains followed an upgrade from Morgan Stanley, which raised its rating on the software company to Overweight from Equalweight and lifted its price target to $65 from $58. Analysts cited expectations that Dynatrace’s constant-currency net-new annual recurring revenue (ARR) growth will rebound to above 20% in fiscal year 2027 and maintain that pace through fiscal 2028 and 2029. They also pointed to a renewal cohort of Dynatrace Platform Subscription customers that is roughly 50% larger than prior cohorts, providing a structural tailwind.
Baird increased its price target to $62 from $45 while maintaining an Outperform rating. Goldman Sachs similarly raised its target to $57 from $50, keeping a Buy rating. UBS, which reiterated its Buy rating, set a $65 price target and noted that first-quarter organic net-new ARR grew 41% year-over-year.
UBS also highlighted Dynatrace’s pending $915 million cash-and-stock acquisition of Arize as a potential catalyst for AI observability expansion. The deal remains subject to regulatory approvals.
Major U.S. equity gauges showed modest gains in pre-market trading, with the S&P 500 up 0.5% and the Nasdaq gaining 0.9%.
