Datadog named a Best Idea for 2025 at TD Cowen

TD Cowen analyst Andrew Sherman named Datadog (DDOG) a Best Idea for 2025 while keeping a Buy rating on the shares with a $165 price target The firm sees Datadog as the largest consolidator in a market “ripe share gain opportunities,” and highlights its strong cloud leverage and ramping free cash flow production. While the company’s artificial intelligence-native customer tailwinds may moderate, this is transitory and there remains long-term AI benefits, the analyst tells investors in a research note. TD expects Datadog to guide fiscal 2025 “roughly inline, which should clear an overhang,” and sees S&P 500 Index inclusion as likely. It views the stock as attractively valued at current levels.