UBS has started covering Dynatrace (DT) with a Neutral rating and a price target of $58. The firm acknowledges Dynatrace's strong positioning to capture market share but expresses caution regarding its near-term revenue growth trajectory.

Analysts noted that while the company's valuation appears reasonable, they prefer to remain on the sidelines until there is greater confidence in its growth profile and sales execution. The report highlights positive feedback from partners and customers regarding Dynatrace's feature functionality, alongside indications of "budgets loosening." Additionally, UBS's checks suggest that the broader observability software market remains healthy, albeit competitive and under scrutiny for spending.