Datadog (DDOG – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Saiyi He from CMB International Securities reiterated a Buy rating on the stock and has a $156.40 price target.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Saiyi He has given his Buy rating due to a combination of factors that highlight Datadog’s strong performance and future growth potential. The company’s financial results for the fourth quarter of 2024 exceeded expectations, with revenue and net income growth driven by operating leverage and solid revenue expansion. Datadog’s management plans to invest in sales and marketing as well as research and development to capitalize on long-term growth opportunities, despite potential short-term impacts on margins.
Saiyi He also noted that Datadog’s customer base and average revenue per user (ARPU) have grown significantly, with an increase in the number of large enterprise customers and a greater adoption of their product offerings. The rise in revenue contribution from AI-native customers further strengthens the company’s position in the market. While the planned investments might affect near-term earnings, the focus on expanding capabilities and entering less mature markets supports a positive outlook for Datadog’s long-term business development.
He covers the Communication Services sector, focusing on stocks such as Baidu, Iqiyi, and Meta Platforms. According to TipRanks, He has an average return of 15.1% and a 67.47% success rate on recommended stocks.
In another report released yesterday, Goldman Sachs also reiterated a Buy rating on the stock with a $162.00 price target.