Datadog, the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Sherman from TD Cowen maintained a Buy rating on the stock and has a $170.00 price target.
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Andrew Sherman has given his Buy rating due to a combination of factors that indicate strong future performance for Datadog. The company is expected to exceed its guidance with significant revenue growth, driven by strong demand for its Observability products and good traction in its Logs segment. Additionally, Datadog is poised to gain market share from competitors like Splunk, which is perceived to be lagging in innovation.
Furthermore, Datadog’s sales headcount has increased significantly, indicating robust sales momentum. The company’s relationship with major clients, such as OpenAI, suggests continued growth in usage, particularly in mission-critical applications. These factors, combined with the potential for further guidance raises, underpin Sherman’s confidence in Datadog’s ability to outperform expectations, justifying the Buy rating.
In another report released on July 23, Cantor Fitzgerald also reiterated a Buy rating on the stock with a $171.00 price target.