Infrastructure Software Faces Higher Demand, BofA Says

10:59 AM EDT, 10/23/2026 (MT Newswires) -- Datadog (DDOG), Dynatrace (DT), and other infrastructure software companies are facing higher demand, with artificial intelligence contributing more to growth and platform usage, BofA Securities analysts said in a Friday note. Analysts said the Q3 earnings cycle will continue to show the infrastructure software subsector is more durable and a bigger AI beneficiary than at least two of the four software subsectors - applications and vertical. BofA said Datadog is the best share gainer in the subsector with the faster-growing total addressable market. Atlassian (TEAM) is its other top pick. C3.ai (AI) and UiPath (PATH) face the highest downward estimate revision risk in the subsector due to a highly competitive enterprise AI end-market, analysts said. BofA raised Datadog's price target to $335 from $305; Dynatrace to $78 from $65; Elastic (ESTC) to $114 from $108; Atlassian to $252 from $210. It lowered the price target on UiPath to $12 from $15. Price: 267.28, Change: +9.53, Percent Change: +3.70