In a report released today, William Power from Robert W. Baird reiterated a Buy rating on Datadog, with a price target of $220.00.
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William Power has given his Buy rating due to a combination of factors that highlight Datadog’s competitive position and growth potential. Despite concerns about competition from PANW’s acquisition of Chronosphere, Power believes that Datadog remains strong in the observability market, especially with its recent contract extension with a major AI customer, likely OpenAI. This suggests continued reliance on Datadog’s services by key players in the AI sector.
Furthermore, Power points out that while Datadog’s stock has experienced a decline, the company’s overall growth trajectory remains positive, particularly among its AI and non-AI customer base. The target price of $220 is based on a valuation that reflects Datadog’s strong momentum and solid financial projections, positioning it favorably compared to other high-growth software companies. Therefore, Power sees the current stock weakness as a buying opportunity, reinforcing his positive outlook on Datadog’s future performance.
In another report released on November 21, Citi also maintained a Buy rating on the stock with a $200.00 price target.
Based on the recent corporate insider activity of 151 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.