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Investing.com - TD Cowen has reiterated its Buy rating and $150.00 price target on Datadog (NASDAQ:DDOG), as the cloud monitoring company prepares to join the S&P 500 index.
The software company will be added to the S&P 500 on July 9, 2025, replacing Juniper Networks (NYSE:JNPR), which was acquired by Hewlett Packard Enterprise (NYSE:HPE). Datadog shares rose 11% in after-hours trading following the announcement.
TD Cowen expects strong demand for Datadog shares given the company’s current market capitalization of approximately $47 billion, which would represent about a 0.09% weight in the index according to the firm’s calculations.
The inclusion in the S&P 500 is expected to bring "a broader audience of large cap & generalist investors to the name," according to TD Cowen’s research note.
Datadog remains one of TD Cowen’s top picks, with the firm noting it had been highlighting this potential catalyst since November.
In other recent news, Datadog has been making headlines with several notable developments. The company is set to join the S&P 500 index, replacing Juniper Networks following its acquisition by Hewlett Packard Enterprise. This inclusion is seen as a significant milestone, reflecting Datadog’s growth since going public in 2019. Analyst firms have responded positively to these developments, with Wedbush raising its price target for Datadog to $170, citing the company’s momentum in the observability space, particularly with its focus on artificial intelligence.
Stifel also adjusted its price target to $135, following a customer survey indicating stabilizing trends and expectations for future growth. Meanwhile, BofA Securities increased its price target to $150, highlighting Datadog’s strong execution, revenue growth, and product development. The firm noted that Datadog is well-positioned to maintain durable revenue growth and robust cash flow margins. These recent developments underscore the company’s strong market presence and potential for continued growth.
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