Stifel upgrades Datadog to Buy with checks showing large beat

Stifel last night upgraded Datadog (DDOG) to Buy from Hold with a price target of $160, down from $205. Recent channel checks indicate the company will post “another larger than typical” quarterly beat in Q4, driven by accelerating core growth and continued strong gains, the analyst tells investors in a research note. The firm believes Datadog will guide 2026 revenue to $4.1B, implying “conservative” 19% core growth and that OpenAI Integration remains at its current $90M per quarter run-rate. The stock’s valuation “appears relatively attractive for one of the few names we cover with accelerating core growth,” contends Stifel.