Rosenblatt offers its insight on three tech stocks ahead of their earnings results in May.
Alteryx, Inc 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 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 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.
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