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Investing.com - Stifel raised its price target on Datadog (NASDAQ:DDOG) stock to $135 from $120 on Wednesday while maintaining a Hold rating following the completion of its fourth customer survey. The stock, currently trading at $130.26, has shown strong momentum with a market capitalization of $45 billion. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
The survey of approximately 25 customers, with about 84% spending over $100,000, revealed that installed-base optimization remained relatively flat at around 36% compared to Stifel’s previous survey, but the aggressiveness of these optimizations appears to be stabilizing.
More than 50% of surveyed customers indicated they expected to return to growth after completing optimization efforts, while pricing discounts remain consistent with historical trends and overall price-to-value ratio meets user expectations.
The survey showed fiscal year 2025 growth expectations remain flat compared to fiscal year 2024 at approximately 11%, with security adoption gaining momentum as ongoing improvements within the product suite generate some competitive displacements.
Stifel noted that LLM Observability adoption stands to accelerate while Splunk (NASDAQ:SPLK) displacements remain modest, suggesting stability in Datadog’s core business but indicating that growth acceleration and operating margin rebounds might not materialize until the first half of 2026.
In other recent news, Datadog has been the focus of several analyst updates and events that highlight its ongoing developments. Bank of America Securities raised its price target for Datadog to $150, maintaining a Buy rating due to strong revenue growth exceeding 20% and active participation in artificial intelligence. Stifel, on the other hand, maintained its Hold rating with a $120 price target, citing a balanced view on growth trajectory and investment strategy, while noting potential upside from new products in the coming years. Cantor Fitzgerald reiterated its Overweight rating with a $134 price target, praising Datadog’s innovation and new product cycle, particularly products built on Bits AI. BNP Paribas (OTC:BNPQY) Exane also reiterated an outperform rating with a $150 price target, emphasizing customer excitement about Datadog’s AI capabilities and the potential of its On-call product. Wolfe Research upgraded Datadog from Peerperform to Outperform, setting a $150 price target, following positive impressions from the company’s DASH conference and noting growth in its AI customer base. These recent developments indicate a strong focus on innovation and expansion within the company.
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