Analyst Gray Powell of BTIG maintained a Buy rating on Datadog (DDOG – Research Report), reducing the price target to $136.00.
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Gray Powell’s rating is based on Datadog’s strong performance in the first quarter, which exceeded both their own and the market’s expectations across key performance indicators. Despite a mixed forward outlook, with increased revenue guidance but a reduced operating income forecast, the company’s growth trends are proving better than anticipated.
Powell notes that Datadog is well-positioned for a potential economic slowdown, as customers have been focusing on cloud optimization. This strategic positioning, combined with the potential for revenue growth closer to 25% year-over-year, supports the Buy rating. Additionally, the strong activity in large deals and consistent usage trends further bolster confidence in Datadog’s continued success.
In another report released today, Monness also maintained a Buy rating on the stock with a $160.00 price target.