UBS upgrades Dynatrace to Buy from Neutral, price target $60

UBS upgraded Dynatrace (DT) to Buy from Neutral, setting a $60 price target. The bank cited stronger demand for application performance monitoring and growing traction with its log analytics product. UBS analysts said enterprises are consolidating observability tools, which benefits Dynatrace's platform.

The new target implies roughly 15% upside from the stock's last close near $52. Dynatrace shares have slipped about 10% this year, weighed by slower corporate IT spending.

UBS's upgrade comes as the observability market expands. Dynatrace's Davis AI engine is a differentiator against competitors such as Datadog and New Relic. UBS joins several other firms with buy ratings on Dynatrace.