Dynatrace Well Positioned on Growth Strategy Amid Starboard Activist Push, Wedbush Says

MT Newswires Live00:11

Dynatrace (DT) remains well positioned on its profitable growth strategy amid Starboard Value taking a stake and pushing for faster revenue acceleration, margin expansion, and increased capital returns, Wedbush Securities said in a Wednesday note.

Wedbush noted Dynatrace remains focused on balancing revenue growth and margin expansion through ongoing product innovation and platform expansion.

Starboard, which has developed a reputation for improving sentiment around companies, has brought up some important points that should be addressed, Wedbush said, adding that Dynatrace has actively engaged with the activist investor to address some of the concerns with its struggling share price.

The brokerage said Dynatrace seen as an "AI loser" is not the right approach, given the necessary growing market the company operates in.

Wedbush maintained an outperform rating on the stock with a price target of $55.

Price: 35.98, Change: -0.01, Percent Change: -0.03

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