Dynatrace: Deserving A Richer Valuation As A Profitable Growth Stock

Sep. 27, 2022 12:56 AM ETDynatrace, Inc. (DT) StockDT4 Comments

Summary

  • Observability plays a critical role in today’s increasingly cloud-focused IT environment, offering attractive long-term growth prospects.
  • Dynatrace is a leading company in this lucrative market from a product perspective which is coupled with a unique operating model.
  • In the currently uncertain macroeconomic environment, fundamentals are still holding up well, which is not correctly reflected in the valuation of shares in my opinion.

Az Eiffel-torony megfigyelő teleszkópja. Párizs, Franciaország

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Investment thesis

Dynatrace (NYSE:DT) is one of the leading companies in the rapidly growing IT observability market and is well positioned for capturing further market share. The company has a large base of enterprise customers who

This article was written by

Hi there! I’m a former Equity Analyst and a CFA charterholder writing mostly about holdings in my investment portfolio. These are overwhelmingly transformative technology names with perceived significant long-term upside potential. Once I’ve covered a company on SA, I try to update my views on it regularly.I like to do dig deep into company fundamentals and cover topics previous articles didn’t elaborate on. Rigorous valuation is a must in my world. Feel free to share your opinion in the comment section, constructive critique is more than welcome!

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DT, DDOG, ESTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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