As previously reported, BofA analyst Koji Ikeda downgraded Datadog to Neutral from Buy with a price target of $105, down from $123. Based on recent checks with developers, partners and system installers, the demand environment has not meaningfully improved, the analyst tells investors. Additionally, Datadog is widely perceived to be a premium offering, which could drive the end-market to lower cost competitors, native hyperscaler offerings and/or open-source alternatives, added the analyst, who lowered the firm’s estimates to below consensus.
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