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Investing.com - Canaccord Genuity raised its price target on Datadog (NASDAQ:DDOG) to $185.00 from $160.00 on Monday, while maintaining a Buy rating on the stock. The move comes just 3 days before Datadog’s November 6 earnings report, with the stock currently trading at $162.81, near its 52-week high of $170.08.
The research firm cited Datadog’s strong execution and "rule-of-55+" profile, along with rising artificial intelligence tailwinds, as key factors behind the more bullish outlook. InvestingPro data confirms this strength, showing impressive gross profit margins of 79.94% and revenue growth of 26% over the last twelve months.
Canaccord views Datadog as a "core holding" ahead of the company’s upcoming earnings report, according to its research note.
The new $185 price target reflects approximately 15.5 times enterprise value to calendar year 2026 revenue and 59 times enterprise value to calendar year 2026 free cash flow.
Canaccord noted this valuation still represents a slight discount compared to other category leaders such as Crowdstrike and Snowflake, as well as CyberArk’s current valuation resulting from the pending Palo Alto Networks acquisition.
In other recent news, Datadog has seen several updates regarding its stock price targets and product offerings. TD Cowen raised its price target for Datadog to $180, maintaining a Buy rating, and expects the company to surpass its guidance of 23% growth. UBS also increased its price target to $189, highlighting a positive outlook following an assessment of competitive dynamics at a user conference. Meanwhile, Bernstein adjusted its target to $170, citing strong cloud consumption trends as a driving factor. Stifel, however, reiterated a Hold rating with a $135 target amid the renewal of OpenAI’s contract with Datadog, though details on the contract’s size and scope remain unclear.
On the product front, Datadog announced new integrations for Oracle Cloud Infrastructure, including GPU Monitoring, Cloud Cost Management, and Cloud SIEM, enhancing its capabilities in managing AI and machine learning workloads. These developments reflect ongoing efforts to expand its monitoring tools for various cloud services. These recent activities indicate a period of dynamic change and growth for Datadog.
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