Dynatrace (DT) has multiple drivers on its path to fiscal 2027 acceleration, RBC Capital Markets said in a Wednesday note.

The company had a "good, but not great" fiscal Q4, as annual recurring revenue grew 16% in constant currency for the fourth quarter in a row, RBC analysts said.

Dynatrace provided bullish guidance around net new annual recurring revenue for fiscal 2027, but investors are trying to reconcile this with the fact that growth was actually slower in H2 of fiscal 2026, ending at 9% growth, according to the note. To achieve this target, the company would need to hit 23% growth, nearly double the 12% growth seen in fiscal 2026, the analysts said.

The keys to growth for net new annual recurring revenue will be mainly Dynatrace Platform Subscription renewals, higher sales productivity, the Logs product, and new customers, the analysts said.

RBC maintained the company's stock rating at outperform and reduced the price target to $45 from $50.

Price: 36.59, Change: +1.86, Percent Change: +5.36