Morgan Stanley Upgrades Dynatrace, Sees 33% Upside to $65 on AI Observability Boom
Updated
Updated · CNBC · Aug 25
Morgan Stanley Upgrades Dynatrace, Sees 33% Upside to $65 on AI Observability Boom
1 articles · Updated · CNBC · Aug 25
Summary
Morgan Stanley raised Dynatrace to overweight from equal weight and lifted its price target to $65 from $58, implying nearly 33% upside from Monday's close.
The bank said observability demand is at its healthiest since 2022, driven by stronger public-cloud growth, a new wave of software development and early gains from enterprise AI spending.
Dynatrace is now expected to deliver durable growth of 20% or more and margin expansion over roughly the next two years as that demand builds.
Wall Street already leans bullish: 26 of 37 analysts rate the stock buy or strong buy, while Dynatrace shares are up 13% year to date.