Peter Weed, an analyst from Bernstein, maintained the Buy rating on Datadog (DDOG – Research Report). The associated price target remains the same with $151.00.
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Peter Weed’s rating is based on Datadog’s potential for future growth despite a conservative guidance for 2025. The company is projected to benefit from the integration of AI projects, even though initial progress may be slow due to operational hurdles faced by hyperscalers. Datadog has shown positive signs with an increase in new customers and a notable rise in high-value customer segments, indicating strong underlying business momentum.
Furthermore, the company’s strategic investments in R&D and sales and marketing are expected to enhance long-term growth capabilities, which is a bullish signal for future performance. Although the 2025 margin guidance is lower than consensus, maintaining spending plans could lead to potential top-line beats and subsequent bottom-line expansion. The valuation metrics support a favorable outlook, reinforcing the Buy rating with a price target of $151.
In another report released today, CMB International Securities also maintained a Buy rating on the stock with a $156.40 price target.
Based on the recent corporate insider activity of 141 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DDOG in relation to earlier this year.