Datadog price target raised to $120 from $90 at Wedbush

Wedbush analyst Taz Koujalgi raised the firm’s price target on Datadog to $120 from $90 and keeps an Outperform rating on the shares following the company’s DASH 2023 conference and call with an expert to get some feedback on the the company and its competitive landscape. Feedback on Datadog’s Product/Technology was positive, and the firm heard numerous anecdotes of customers migrating from other vendors, and consolidating on Datadog. However, Wedbush did not hear many instances of customers using their Security products, and partners indicated that adoption of its Security products is still very early. Feedback on the company’s pricing was mixed with some customers telling the firm that while pricing was on the higher side, it was not any different with other vendors, while some customers were more negative on Datadog’s pricing and told the firm that they were looking for cheaper alternatives. In addition, we also present our thoughts on the setup into earnings this week. Based on Wedbush’s conversations with investors, Q2 revenues expectations seem reasonable.