Needham analyst Mike Cikos maintained a Buy rating on Datadog today and set a price target of $175.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Mike Cikos has given his Buy rating due to a combination of factors that highlight Datadog’s strong performance and growth potential. The company’s second-quarter results for the fiscal year 2025 surpassed expectations, driven by increased usage from existing customers, particularly those in the AI-native segment. This AI-native group has significantly contributed to Datadog’s revenue, accounting for a notable portion of the year-over-year growth.
Furthermore, Datadog’s core business has shown consistent enterprise usage growth, with small to mid-sized businesses and the mid-market segment exhibiting improved usage compared to the previous quarter. Additionally, Datadog’s security division has reached a significant milestone, achieving over $100 million in annual recurring revenue and growing at a robust rate. The company’s strategic positioning with AI-native companies, including eight of the top ten organizations as customers, and recent sales team expansions, further support the positive outlook.
Cikos covers the Technology sector, focusing on stocks such as Zscaler, Cellebrite DI, and Cognyte Software. According to TipRanks, Cikos has an average return of 11.1% and a 51.96% success rate on recommended stocks.
In another report released today, Monness also maintained a Buy rating on the stock with a $185.00 price target.