Fatima Boolani, an analyst from Citi, maintained the Buy rating on Datadog (DDOG – Research Report). The associated price target was lowered to $165.00.
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Fatima Boolani’s rating is based on several compelling aspects of Datadog’s recent performance and future prospects. The company has demonstrated strong revenue growth, exceeding expectations with a 4% beat, and has successfully reversed previous plateaus with a significant increase in new logos. This indicates a robust demand environment, bolstered by contributions from artificial intelligence initiatives.
Additionally, while the operating margin beat was modest, it signifies future investments aimed at overcoming capacity constraints, which are anticipated to support future growth. Datadog’s track record of excellent go-to-market efficiency in the enterprise software sector is expected to drive a favorable setup for fiscal year 2025. Despite potential concerns regarding the variability of AI contributions to growth, the overall outlook remains positive, justifying the Buy rating with a price target of $165.
In another report released today, CMB International Securities also maintained a Buy rating on the stock with a $156.40 price target.
Based on the recent corporate insider activity of 141 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.