Oppenheimer Initiates Dynatrace (DT) with Outperform, Citing AI-Driven Growth Potential

Dynatrace, Inc. (NYSE:DT) is one of the best tech stocks to buy according to hedge funds. On August 27, Oppenheimer initiated coverage of Dynatrace, Inc. (NYSE:DT) with an Outperform rating and a price target of $65. As of September 2, the stock was trading at $50.11, a 29.7% implied upside.

The firm noted that Dynatrace, Inc. (NYSE:DT) is a leading observability vendor with a platform built on its Grail data lakehouse and Davis artificial intelligence engine. Oppenheimer cited that the company’s revenue growth can see a “meaningful uplift” as its pricing plan removes purchasing friction and drives multi-product use. Oppenheimer also believes that consensus estimates for the company are low.

The company is currently focusing on developing its third-generation platform, which emphasizes on autonomous intelligence. Dynatrace is leveraging the company’s Davis AI, which will help provide actionable insights and automated remediation to enterprises. This will be a departure from only providing reactive operations and preventive measures.

The stock is trading at a forward P/E ratio of 27.67x, which is reasonable given that Wall Street expects the company to grow its revenue in double digits in 2026, and its margins have been steadily improving.

While we acknowledge the potential of DT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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