Bank of America Securities analyst Koji Ikeda has reiterated their bullish stance on DDOG stock, giving a Buy rating yesterday.
Koji Ikeda has given his Buy rating due to a combination of factors, primarily focusing on Datadog’s ability to innovate and expand its product offerings. The company’s capability to develop and scale new products, such as infrastructure monitoring and application performance monitoring, is seen as a significant strength. This adaptability and innovation are expected to drive future revenue growth, providing confidence in the company’s potential to exceed its 2025 revenue guidance.
Additionally, Ikeda highlights the promising growth potential of Datadog’s Flex Logs, which offer a cost-effective solution for data storage and processing. This product is anticipated to become a core growth pillar due to its appeal to a broad customer base. Furthermore, Datadog’s diverse product portfolio, which includes 20 other products generating substantial ARR, is projected to contribute significantly to the company’s growth. By adjusting growth rate assumptions, Ikeda sees potential for ARR to surpass current forecasts, reinforcing his positive outlook on Datadog’s stock.
In another report released yesterday, Jefferies also maintained a Buy rating on the stock with a $150.00 price target.
Based on the recent corporate insider activity of 135 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.