Datadog stock rating reiterated by Cantor Fitzgerald on AI innovation

Published 13/06/2025, 13:06
Datadog stock rating reiterated by Cantor Fitzgerald on AI innovation

Cantor Fitzgerald maintained its Overweight rating and $134.00 price target on Datadog (NASDAQ:DDOG), currently trading at $122.68, following the company’s Annual User Conference, DASH, held in New York City this week. According to InvestingPro data, analyst targets for the stock range from $115 to $200, reflecting mixed views on the company’s current valuation.

The research firm expressed confidence in Datadog’s "innovation engine firing on all cylinders" and noted strengthening structural drivers based on conversations and feedback at the event. This innovation is reflected in the company’s impressive financial metrics, with a robust gross profit margin of 80.15% and strong revenue growth of 25.54% over the last twelve months. Cantor Fitzgerald highlighted the numerous new releases and products in general availability, with particular emphasis on products built on Bits AI, the company’s agentic offering.

Datadog’s path forward appears to be entering a new product cycle driven by recently announced acquisitions of Eppo and Metaplane, according to the research firm. New agentic capabilities in SRE, data, and security were also cited as growth factors, alongside competitive displacements and continued enterprise modernization and cloud migration trends.

Cantor Fitzgerald pointed to Datadog’s "best in class GTM team" and "world-class engineering talent" as key strengths, noting that the company is "saving thousands of engineering hours a week with AI." The firm’s history of innovation and execution were additional factors supporting the maintained rating.

The research firm reiterated its Overweight rating "with confidence" based on its assessment of Datadog’s performance and prospects following the DASH conference. InvestingPro analysis reveals several positive indicators, including strong cash position and healthy liquidity ratios. For a complete analysis of Datadog’s financial health and 13 additional ProTips, including detailed valuation metrics and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, Datadog has garnered significant attention following its DASH 2025 user conference. BNP Paribas (OTC:BNPQY) Exane reiterated its outperform rating, maintaining a $150.00 price target, citing strong customer interest in Datadog’s new On-call product and Agentic AI capabilities. Wolfe Research upgraded Datadog from Peerperform to Outperform, also setting a $150.00 price target, highlighting the company’s growing presence in the AI sector, with "at least 17 of 50 top AI companies" now as customers. UBS raised its price target for Datadog to $140.00 from $125.00, maintaining a Buy rating, after positive feedback on Datadog’s emerging products, despite mixed responses on core usage growth.

Stifel maintained a Hold rating with a $120.00 price target, noting strong interest in Datadog’s generative AI monitoring and observability capabilities. Meanwhile, Goldman Sachs increased its price target to $138.00, up from $127.00, and upheld its Buy rating, impressed by Datadog’s pace of product development and strategic enhancements. These recent developments reflect a broad confidence in Datadog’s competitive positioning and potential for sustained revenue growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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