Dynatrace gains as Morgan Stanley upgrades on cloud, AI growth
DT•Morgan Stanley raises Dynatrace rating and target
Shares of AI-powered cloud monitoring software provider Dynatrace rose 3.7% to $50.86 after Morgan Stanley raised the stock's rating to overweight from equal-weight and its price target to $65 from $58, implying about 32.5% upside from its last closing price.
The brokerage said DT is poised to benefit on the back of a strong observability market.
"Observability demand is the healthiest since 2022, supported by accelerating cloud growth, digital transformation and enterprise AI adoption"
Morgan Stanley also said DT's acquisition of Arize strengthens its position in AI workloads and supports its push toward autonomous operations.
Twenty-seven of 37 brokerages rate the stock buy or higher and 10 rate it hold; the median price target is $60.
Including the session's move, the stock is up 17.4% year to date.
