Analyst Koji Ikeda of Bank of America Securities maintained a Buy rating on Datadog (DDOG – Research Report), retaining the price target of $175.00.
Koji Ikeda has given his Buy rating due to a combination of factors, primarily influenced by the positive growth trends observed in Amazon AWS’s results. The sustained growth rate of AWS suggests a potential upside to the market’s revenue expectations for Datadog in the fourth quarter of 2024. Ikeda’s analysis leverages historical trends between AWS and Datadog’s revenue growth, indicating that even with a modest deterioration in the AWS multiplier, Datadog’s revenues could still exceed market predictions.
Furthermore, despite softer-than-expected results from other hyperscalers like Microsoft Azure and Google Cloud Platform, the demand outlook within the observability category remains promising, especially in the enterprise segment. Findings from the Dynatrace Perform conference also support a positive outlook for Datadog, reinforcing the notion that the observability market is ample enough to support growth for multiple companies, including Datadog. These elements collectively underpin Ikeda’s decision to maintain a Buy rating with a price objective of $175.
According to TipRanks, Ikeda is a 5-star analyst with an average return of 17.0% and a 62.32% success rate. Ikeda covers the Technology sector, focusing on stocks such as Datadog, Dynatrace, and BlackLine.
In another report released on February 5, Evercore ISI also maintained a Buy rating on the stock with a $155.00 price target.