Datadog price target raised to $162 from $133 at Scotiabank

Scotiabank raised the firm’s price target on Datadog (DDOG) to $162 from $133 and keeps an Outperform rating on the shares after meeting with management. The firm sees Datadog as a “clean way to play the themes” of digital transformation and DevOps, and expects “nice momentum” in 2025. However, the Street’s targets for 23% revenue growth in 2025 are a “bit of an overhang,” especially if artificial intelligence-native companies recommit with larger volume-based discounts, the analyst tells investors in a research note. Scotiabank says that while it “can’t pound the table on Datadog right now,” it continues to “love its leadership in cloud-native observability, and end to-end solution across the three pillars of observability which plays into the trend of market consolidation.”