Dynatrace (DT.N): Pre-Quiet Period IR Catch-up: Getting Comfortable With The Ride

Research evidence excerpt

Dynatrace (DT.N): Pre-Quiet Period IR Catch-up: Getting Comfortable With The Ride

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17 Jun 2026 00:02:27 ET │ 11 pages

Dynatrace (DT.N)

Pre-Quiet Period IR Catch-up: Getting Comfortable With The Ride

CITI’S TAKE

DT’s pre-quiet period group sell side catch up included key reminders on

Buy the growth algorithm, AI opportunity, and GTM evolution. Factoring in

Price (16 Jun 26 16:00) US$41.46 Bindplane’s ~$10M ARR and reasonable (in our view) productivity

assumptions, FY27E ARR outlook is palatable (a hotly debated view for Target price US$50.00

investors), and with FY26 being the ‘year of stabilization’, this should set Expected share price return 20.6%

up for the long-awaited topline rehabilitation/acceleration. Additionally, Expected dividend yield 0.0%

we see a tangible path to broader ‘AI winner’ status as DT’s foothold in Expected total return 20.6%

large enterprises anchors the AI/Agentic observability opportunity as Market Cap US$12,085M

these customers grow/mature their adoption. All in, we remain

constructive at ~4x EV/S’27E and ~16x EV/FCF’27E (similar secular

exposure to DDOG but ~3-times cheaper). Top takeaways from this IR

catch-up below. Fatima BoolaniAC

+1-212-816-9115

fatima.boolani@citi.com

Joel Omino

Breaking Down FY27E Guidance to Demonstrate Attainability +1-212-519-9383

joel.omino@citi.com

• Bindplane is $10M of the ~$50M implied incremental NNARR in FY27E.

Mark Zhang

• Hypothetically if there’s no change in productivity DT should be able to +1-212-816-2267

reproduce the $30M of incremental ARR they did in FY26 again. mark1.zhang@citi.com

• Bindplane and the hypothetical scenario of no productivity leaves ~$7-10M

incremental ARR to pursue, which DT ties to DPS momentum, Logs, sales

productivity improvements and continued GTM evolution.