Analyst Brian White from Monness maintained a Buy rating on Datadog (DDOG – Research Report) and keeping the price target at $155.00.
Brian White has given his Buy rating due to a combination of factors, despite the challenges in the broader cloud market. Datadog has shown resilience and adaptability, particularly in the face of a difficult software environment, managing to increase its stock value by 18% in 2024. This performance, while slightly below the broader market, highlights its capacity to navigate complex market conditions effectively.
Moreover, Datadog is well-positioned to benefit from the growing complexities of generative AI, distinguishing itself from peers who struggled during the AI hype of 2023. Its ability to attract AI-native customers, who now represent a more significant portion of its annual recurring revenue, underscores its strategic positioning in the market. While some AI-native clients may seek better terms in the future, Datadog’s steady growth trajectory and potential in the AI sector justify the positive outlook.
In another report released yesterday, Macquarie also maintained a Buy rating on the stock with a $200.00 price target.