Dynatrace initiated with a Neutral at UBS

UBS initiated coverage of Dynatrace (DT) with a Neutral rating and $58 price target Dynatrace is well-positioned to gain share, but UBS is not as confident in the near-term revenue growth trajectory, the analyst tells investors in a research note, adding that Dynatrace’s valuation looks reasonable, but the firm is comfortable waiting on the sidelines pending more confidence in the growth profile and sales execution. The firm notes that it was impressed with the partner and customer commentary about Dynatrace’s feature functionality and anecdotes of “budgets loosening,” and says checks pointed to the broader observability software market being relatively healthy but competitive and subject to continued spend scrutiny.