Dynatrace Poised to Benefit From AI Tailwinds, Demand Strength, UBS Securities Says

MT Newswires Live06-16 23:44

Dynatrace (DT) is well positioned to benefit from accelerating demand for observability software, growing adoption of artificial intelligence and strong customer retention, UBS Securities said in a note Monday.

The investment firm said customer and partner checks pointed to healthy spending trends driven by strong application performance monitoring demand, increasing traction in log management and emerging AI-related opportunities. Partners also reported accelerating growth and a stable-to-improving outlook through year-end, the note said.

AI could provide an additional boost to growth through increased software development activity, adoption of Dynatrace's AI capabilities and rising demand for large language model and agent observability tools, while the risk of AI-driven disruption remains low because of the company's technical advantages, according to the note.

UBS Securities assumed coverage of Dynatrace with a buy rating and a $60 price target.

Shares of Dynatrace were up more than 1% in Tuesday trading.

Price: 41.73, Change: +0.54, Percent Change: +1.30

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