Datadog’s Strong Market Position and AI-Driven Growth Justify Buy Rating and Raised Price Target

Analyst Koji Ikeda of Bank of America Securities reiterated a Buy rating on Datadog (DDOG – Research Report), boosting the price target to $138.00.

Koji Ikeda has given his Buy rating due to a combination of factors that highlight Datadog’s strong market position and growth potential. The company reported impressive first-quarter results, exceeding revenue expectations and revising its 2025 revenue guidance upwards, which helps mitigate concerns about macroeconomic uncertainties. Datadog’s focus on AI-native growth is particularly noteworthy, as it has significantly contributed to the company’s revenue increase, positioning Datadog to capitalize on the expanding AI market.
Despite a lowered operating income guidance due to increased M&A and international operating expenses, Ikeda remains optimistic about Datadog’s long-term prospects. The company’s potential to gain market share in the $50 billion observability market and its solid execution justify the raised price objective of $138. This target implies a 29% upside, reflecting confidence in Datadog’s ability to deliver durable revenue growth and capitalize on its AI-driven initiatives.

In another report released today, CMB International Securities also maintained a Buy rating on the stock with a $158.70 price target.

DDOG’s price has also changed moderately for the past six months – from $128.350 to $106.060, which is a -17.37% drop .