Datadog, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Mike Cikos from Needham maintained a Buy rating on the stock and has a $175.00 price target.
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Mike Cikos has given his Buy rating due to a combination of factors that highlight Datadog’s strong growth potential and strategic positioning in the market. The company’s Annual Recurring Revenue (ARR) is expected to surpass $3.5 billion in the upcoming quarter, with a growth rate in the mid-to-high 20% range. This growth is primarily driven by Datadog’s core offerings in Infrastructure Monitoring, APM Suite, and Log Management, which together account for approximately 90% of the total ARR.
Additionally, Cikos emphasizes the promising performance of Datadog’s Security Suite, which is projected to reach $100 million in ARR with a mid-40% growth rate by the second quarter of 2025. He also points out the potential of new products like Flex Logs, which are experiencing significant year-over-year growth and are likely to become major contributors to the company’s revenue. These factors collectively underscore Datadog’s robust growth trajectory and justify the Buy rating.
According to TipRanks, Cikos is a 4-star analyst with an average return of 9.1% and a 49.03% success rate. Cikos covers the Technology sector, focusing on stocks such as Zscaler, Datadog, and Cognyte Software.
In another report released on August 8, Mizuho Securities also reiterated a Buy rating on the stock with a $155.00 price target.