Citi analyst Fatima Boolani maintained a Buy rating on Datadog today and set a price target of $200.00.
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Fatima Boolani’s rating is based on a combination of factors that highlight both challenges and opportunities for Datadog. Despite recent competitive pressures, particularly from PANW’s significant Chronosphere deal, which introduces pricing disruptions and competition, Boolani sees Datadog’s position as competitively navigable. The company’s substantial size advantage, strong enterprise relationships, and credible AI capabilities are viewed as strengths that can help it withstand these market dynamics.
Additionally, while there are concerns about potential customer churn and pricing pressures, Boolani maintains a Buy rating due to Datadog’s ability to leverage its established market presence and goodwill. The expected share price return of 25.3% further supports this positive outlook, even as the target price is adjusted to reflect current market conditions. The recommendation considers the potential for Datadog to continue its growth trajectory despite near-term challenges.
Boolani covers the Technology sector, focusing on stocks such as Palo Alto Networks, Okta, and Datadog. According to TipRanks, Boolani has an average return of 18.9% and a 64.06% success rate on recommended stocks.
In another report released on November 19, Bernstein also maintained a Buy rating on the stock with a $180.00 price target.