Goldman Sachs initiates coverage of Dynatrace, upgrades to Buy with $45 price target, citing AI-driven observability growth.
Analyst notes Dynatrace’s free cash flow margin above 25% and valuation reset near 14x EV/FCF, indicating undervaluation.
Goldman also covers Elastic with Neutral rating and $50 target, but warns of decelerating cloud growth and intensifying competition.
AI is reshaping enterprise observability, driving shift from reactive monitoring to autonomous remediation and higher compute intensity.