Rosenblatt offers its insight on three tech stocks ahead of their earnings results in May.
Alteryx, Inc (NYSE:AYX) will report Q1 results on May 3. Rosenblatt believes that the spending environment has continued to be positive in Q1 for enterprise Digital Transformation projects and low-code/no-code analytics automation platforms such as Alteryx Designer.
Rosenblatt maintained a Buy and target price of $87, representing a potential return of 36%.
Datadog, Inc (NASDAQ:DDOG) will report Q1 results on May 5. This quarter, Rosenblatt expected another strong performance by Datadog, with revenues in line or marginally above its 71% y-o-y growth expectations.
Recent end-market data points indicate continued rapid adoption of cloud services and enterprise Digital Transformation projects driving next-generation monitoring tools.
Rosenblatt trimmed its target price to $180 from $195 (52.2% upside) to reflect higher discount rates and similar enterprise software multiple compression, maintaining a Buy on Datadog.
Dynatrace, Inc (NYSE:DT) will report Q4 results on May 18. Rosenblatt expected at least 27% Subscription growth (potentially several points better), an in-line or marginally better quarter, an estimated NER of ~125%, and continuing end-market solid demand.
Rosenblatt trimmed the target price to $60 from $68 (53.9% upside) to reflect higher discount rates and similar enterprise software multiple compression and remained a Buy.
Price Action: DDOG shares traded lower by 0.23% at $120.50 on the last check Monday. DT shares traded higher by 3.47% at $39.69.
