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Investing.com - Wedbush raised its price target on Datadog (NASDAQ:DDOG) to $170.00 from $140.00 on Thursday, while maintaining an Outperform rating on the stock. The company, currently trading at $135.01 with a market capitalization of $46.6 billion, has shown impressive financial metrics according to InvestingPro data.
The price target increase comes as S&P Global announced that Datadog will be added to the S&P 500 Index, replacing Juniper Networks (NYSE:JNPR) following its acquisition by HP (NYSE:HPQ) Enterprise.
Datadog’s addition to the index surprised some market participants who had expected Robinhood (NASDAQ:HOOD) or Applovin to be selected instead.
Wedbush noted that Datadog was chosen as "the company’s platform continues to gain momentum within the observability space especially with AI front and center."
The index change is scheduled to take effect prior to market open on Wednesday, July 9, which Wedbush views as "further validating the company’s growth story over the coming years."
In other recent news, Datadog has been included in the S&P 500 index following the acquisition of Juniper Networks by Hewlett Packard Enterprise (NYSE:HPE). This milestone reflects Datadog’s growth in market capitalization and liquidity since going public in 2019. Stifel recently raised its price target for Datadog to $135, citing stabilizing customer optimization trends, while maintaining a Hold rating. More than half of the surveyed customers by Stifel expect to return to growth after completing optimization efforts. BofA Securities also increased its price target for Datadog to $150, highlighting strong revenue growth and active participation in artificial intelligence. BofA maintains a Buy rating, expressing confidence in Datadog’s ability to deliver durable revenue growth and meet the "Rule-of-40+" threshold. Meanwhile, Stifel maintained a $120 price target, reflecting a balanced view on Datadog’s growth trajectory and investment strategy. The firm noted potential upside from newer products in the coming years, though these are expected to take time to reach significant scale.
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