An Investor Day event, or something similar, tends to spur confidence in a stock overall. Even if the news isn’t that great, the visibility introduced tends to engender confidence that they’d talk about it regardless. Datadog (NASDAQ:DDOG) just got some very positive new sentiment from analysts, but it didn’t help the share price much, which slipped a bit in Tuesday afternoon’s trading.
The word from Monness, Crespi, Hardt—via analyst Brian White—noted that, starting tomorrow, Datadog would have its annual conference, known as DASH. White is looking for a flood of exciting new developments to emerge from the show, and build on Datadog’s already formidable position in cloud-based systems. In fact, White specifically notes that “…the combination of the secular cloud trend, digital transformation, and Datadog’s expanding portfolio bodes well for the company’s long-term prospects.” Second-quarter earnings just days away won’t hurt matters much, either.
While this sounds like a great play, it’s worth pointing out that Jim Cramer, during his “Mad Money” show, referred to Datadog as “…such a good company,” noting that “…someone should have bought Datadog when it was smaller.” Perhaps by way of tiebreaker, another report emerged calling Datadog “…poised for growth…” thanks to its connection to the cloud-based market as well. That was also a point Cramer called attention to. Several different sources citing the same point does lend it extra credence.
Meanwhile, analysts are all in on Datadog. With 18 Buy ratings and five Hold, Datadog stock is considered a Strong Buy by analyst consensus. However, even with today’s pricing action, Datadog’s average price target of $107 gives it a noticeable 7.15% downside risk.