Analyst Sanjit Singh of Morgan Stanley maintained a Hold rating on Datadog, boosting the price target to $165.00.
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Sanjit Singh has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding Datadog’s current market position and future prospects. Singh acknowledges Datadog’s long-term potential as highly attractive, particularly as the company continues to innovate and expand its market share. However, he expresses concerns about the near-term outlook, noting that the consensus estimates for 2025 appear overly optimistic and that the company is still in the early stages of benefiting from customer AI application development.
Sanjit Singh also highlights the importance of the “Buy versus Build cycle” in assessing Datadog’s growth prospects. While there are early signs of a shift towards a “build” cycle, which could benefit Datadog, the elevated short-term expectations and premium valuation lead Singh to maintain a Hold rating. Despite these concerns, Singh has raised the price target for Datadog, reflecting a more positive outlook over the next four quarters as the company continues to show evidence of market-leading share gains and product innovation.
In another report released on June 26, Stifel Nicolaus also maintained a Hold rating on the stock with a $135.00 price target.
Based on the recent corporate insider activity of 140 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DDOG in relation to earlier this year.