Wolfe upgrades Datadog to Outperform on AI growth opportunity

Wolfe Research last night upgraded Datadog (DDOG) to Outperform from Peer Perform with a $150 price target The firm left the company’s DASH conference more confident in its near-term growth opportunity around artificial intelligence and remains confident in Datadog’s “market leading products driving long-term success.” The shares, after dropping 17% year-to-date, do not accurately reflect Datadog’s growth and margin profile as the company increased guidance to 20% year-over-year growth in 2025, which puts it in the “Heavyweight Growth peers” category, the analyst tells investors in a research note. Wolfe models mid-20% growth in its “upside model” for this year with “durable” 20%-plus growth over the next three years.