Rosenblatt offers its insight on three tech stocks ahead of their earnings results in May.
Alteryx, Inc. 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 percent.
Datadog, Inc. 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 percent 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 percent upside) to reflect higher discount rates and similar enterprise software multiple compression, maintaining a Buy on Datadog.
Dynatrace, Inc. will report Q4 results on May 18. Rosenblatt expected at least 27 percent Subscription growth (potentially several points better), an in-line or marginally better quarter, an estimated NER of ~125 percent, and continuing end-market solid demand.
Rosenblatt trimmed the target price to $60 from $68 (53.9 percent upside) to reflect higher discount rates and similar enterprise software multiple compression and remained a Buy.
