Overview
BTIG has reiterated a Buy rating on Dynatrace Inc. (NYSE: DT), maintaining a price objective of $67.00. The research note highlights artificial intelligence as a supportive factor for Dynatrace’s core Application Performance Monitoring (APM) offering. The $67 target equates to an 87% upside versus the referenced share price of $35.84, and InvestingPro data referenced in the research indicates the stock appears undervalued relative to its Fair Value assessment.
Market sentiment and recent performance
BTIG’s note observed prevailing negative sentiment around Dynatrace in the run-up to its earnings release. The firm pointed to the timing of the company’s report - scheduled for Monday morning following the Super Bowl - as a factor contributing to weaker sentiment. That caution is reflected in the stock’s recent price trajectory, which BTIG notes has fallen 22% year-to-date and more than 43% over the past 12 months.
AI tailwinds and product trends
BTIG framed artificial intelligence as a tailwind for Dynatrace’s APM product, suggesting AI capabilities may enhance the value proposition for customers and the company’s growth prospects. The research further indicates evidence of stronger platform adoption, with Dynatrace Platform Subscription (DPS) appearing to support higher renewal rates.
Additionally, BTIG reported that Dynatrace’s log monitoring functionality is seeing robust uptake among its customer base. The firm interprets this adoption as another positive signal for the company’s platform momentum and a contributor to its favorable rating.
Analyst landscape and upcoming earnings
Other analysts have adjusted their views and targets ahead of Dynatrace’s upcoming results. KeyBanc Capital Markets trimmed its price target to $50, citing factors that it believes could lift Annual Recurring Revenue in the coming quarter. Rosenblatt also revised its target to $60 while keeping a Buy rating as the company approaches its earnings release.
Dynatrace has scheduled the release of its Q3/FY26 results for February 9, 2026, with a conference call planned for 8:00 AM ET. The timing of that announcement has been noted by market participants as influencing short-term sentiment.
Product launches and integrations
At its annual Perform conference in Las Vegas, Dynatrace introduced Dynatrace Intelligence, described as an AI-powered operations system aimed at improving AI workload management. The company also expanded cloud-native integrations across major cloud environments, including AWS, Azure, and Google Cloud, with the stated goal of providing a unified approach to multi-cloud management. Dynatrace highlighted customer success stories tied to its AI Observability platform, illustrating how customers are using the technology to scale AI applications.
Context for investors
BTIG’s maintained Buy rating centers on AI-driven demand for APM, stronger platform subscription dynamics, and growing adoption of log monitoring. Those product and subscription trends are the core reasons the firm continues to see upside from current pricing levels, even as near-term sentiment and recent price declines present headwinds.
Key points
- BTIG reiterates Buy on Dynatrace with a $67 price target, implying an 87% upside from the cited $35.84 share price.
- AI is cited as a positive catalyst for Dynatrace’s APM product, complemented by platform adoption and rising renewal rates tied to Dynatrace Platform Subscription.
- Dynatrace has released new AI operations capabilities and expanded cloud-native integrations, and it will report Q3/FY26 results on February 9, 2026 at 8:00 AM ET.
Risks and uncertainties
- Negative investor sentiment ahead of earnings - linked to the timing of the company’s report - may weigh on short-term price action, impacting the technology and software sectors.
- The stock’s substantial declines year-to-date (22%) and over the past year (more than 43%) underline market skepticism and introduce execution risk for recovery in the software and cloud infrastructure market.
- Diverging analyst targets and recent downward revisions, such as KeyBanc’s cut to $50, indicate uncertainty in near-term revenue and ARR trajectories that could affect investor expectations across enterprise software names.