---
title: "BMO’s Bachman Maintains Outperform on Dynatrace, Trims Price Target to $43 Amid Near-Term Execution Issues but Solid Long-Term ARR Outlook"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286431465.md"
description: "BMO Capital's Keith Bachman maintains a Buy rating on Dynatrace, lowering the price target to $43 due to near-term execution challenges but a strong long-term ARR outlook. Despite a softer quarter with reduced net new ARR and net retention, overall ARR and revenue growth exceeded expectations. Bachman notes management's fiscal 2027 ARR outlook suggests an acceleration in net new ARR, supported by a growing logs business and AI-driven trends. J.P. Morgan also maintains a Buy rating with a $45 price target."
datetime: "2026-05-14T14:15:36.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286431465.md)
  - [en](https://longbridge.com/en/news/286431465.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286431465.md)
---

# BMO’s Bachman Maintains Outperform on Dynatrace, Trims Price Target to $43 Amid Near-Term Execution Issues but Solid Long-Term ARR Outlook

Keith Bachman, an analyst from BMO Capital, reiterated the Buy rating on Dynatrace. The associated price target was lowered to $43.00.

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Keith Bachman has given his Buy rating due to a combination of factors that balance near‑term execution issues with solid underlying fundamentals. While Dynatrace’s latest quarter showed softer net new ARR and a slight downtick in net retention, overall ARR and revenue growth modestly exceeded expectations, and strong billings indicate that core demand for the platform remains healthy.

Looking ahead, Bachman highlights that management’s fiscal 2027 ARR outlook implies an acceleration in net new ARR, supported by a growing logs business and broader AI‑driven tailwinds in observability, even though the guidance appears ambitious given the weaker Q4 finish. He reiterates a positive stance on the shares, maintaining an Outperform rating and a revised $43 price target, reflecting confidence in Dynatrace’s scalable, enterprise‑grade observability platform and its positioning within a structurally attractive monitoring market.

In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $45.00 price target.

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