DT

Dynatrace Inc

TMT


Presented:01/27/2020
Price:$27.94
Cap:$7.84B
Current Price:$53.68
Cap:$15.99B

Presented

Date01/27/2020
Price$27.94
Market Cap$7.84B
Ent Value$5.29B
P/E RatioN/A
Book Value$3.20
Div Yield0%
Shares O/S280.55M
Ave Daily Vol1,464,674
Short Int7.83%

Current

Price$53.68
Market Cap$15.99B
Dynatrace, Inc. offers software intelligence platform, purpose-built for the enterprise cloud. The firm's platform utilizes artificial intelligence at its core and advanced automation to provide answers, not just data, about the performance of applications, the underlying hybrid cloud infrastructure, and the experience of the customers' users. It specializes in cloud ecosystem integration, incident and alert management integration, DevOps CI/CD integration, user experience and business intelligence insights. The company was founded in 2014 and is headquartered in Waltham, MA.

Publicly traded companies mentioned herein: Cisco Systems Inc (CSCO), Datadog Inc (DDOG), Dell Technologies Inc (DELL), Dynatrace Inc (DT), New Relic Inc (NEWR), SailPoint Technologies Holding Inc (SAIL), SolarWinds Corp (SWI) 

Highlights

The presenter is long shares of Dynatrace (DT), as he thinks the software intelligence platform is the best-positioned in the growing application performance monitoring (APM) market. He believes Dynatrace’s differentiated product will capitalize on enterprise growth, as large enterprises focus on a DevOps framework in 2020 and beyond, leading to massive ARR growth for Dynatrace. The stock currently trades ~$27 per share, or ~40x the Street’s 2021 FCF estimate. The presenter believes the stock will appreciate to ~$42 per share on a twelve-month basis and the FCF multiple will expand as ARR accelerates in the next 2 - 3 years. 

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Idea Discussion

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