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Investing.com - TD Cowen raised its price target on Datadog (NASDAQ:DDOG) to $180.00 from $175.00 on Friday, while maintaining a Buy rating on the cloud monitoring company’s stock. The new target aligns with the broader analyst sentiment, as 32 analysts have recently revised their earnings estimates upward. According to InvestingPro data, analyst targets for the stock range from $105 to $200.
The research firm expects Datadog to deliver a strong quarterly performance that exceeds the company’s guidance of 23% growth, noting that concerns about OpenAI have diminished, contributing to the stock’s recent gains. This optimism is supported by Datadog’s impressive 80% gross profit margins and strong financial health, as revealed by InvestingPro analysis.
TD Cowen’s sales headcount tracker for Datadog remains strong, and the firm anticipates more capacity will be ramped up in the second half of the year, supporting its bullish outlook.
The firm identified reacceleration in core growth as a critical factor that investors need to see, which would help set up expectations for fiscal year 2026 guidance, though some investors have expressed skepticism about these projections.
Datadog shares have risen 6% year-to-date, including a 12% gain in the past month, outperforming the enterprise cloud software index which fell 3% during the same period, according to TD Cowen’s analysis.
In other recent news, Datadog, Inc. has made significant strides in expanding its platform capabilities and partnerships. The company announced new integrations for customers using its platform on Oracle Cloud Infrastructure, focusing on enhanced management of AI and machine learning workloads. This expansion includes GPU Monitoring, Cloud Cost Management, and Cloud SIEM, complementing its existing tools for compute, networking, and database performance. Additionally, Datadog has reached a milestone of 1,000 integrations on its unified monitoring and security platform, broadening its observability across various technologies, including AI infrastructure and large language models.
In terms of analyst insights, UBS has raised its price target for Datadog to $189, maintaining a Buy rating, influenced by the renewal outlook with OpenAI. Bernstein also increased its price target to $170, citing strong cloud consumption trends as a driving factor. Meanwhile, Stifel reiterated a Hold rating with a $135 price target, acknowledging OpenAI’s contract renewal with Datadog, although details on the contract size remain unclear. These developments highlight Datadog’s ongoing efforts to enhance its platform and maintain strong industry relationships.
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