Datadog (DDOG – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Nowinski from Wells Fargo maintained a Buy rating on the stock and has a $150.00 price target.
Andrew Nowinski has given his Buy rating due to a combination of factors including Datadog’s consistent revenue growth and the company’s potential for further expansion. Despite Datadog’s first-quarter earnings slightly missing the high expectations, the company displayed strong usage growth and is experiencing a reduction in cost optimization trends by customers. Datadog’s revenue of $611.3 million represented a healthy 27% year-over-year growth, exceeding their own guidance even though it fell short of the more optimistic investor expectations. Furthermore, the management’s improved outlook for the full year, with revenue guidance raised by $35 million, signals confidence in continued robust performance.
Additionally, Nowinski is optimistic about Datadog’s improving usage trends, particularly among high-spending customers, which indicates a strong customer engagement and potential for upsell. The report also highlights the success of Datadog’s emerging products, which demonstrates the company’s ability to innovate and diversify its offerings. These new products are already contributing a significant portion to the company’s annual recurring revenue (ARR), with some showing exceptional growth potential. This breadth of product offerings, combined with favorable usage trends and a solid financial outlook, underpins Nowinski’s Buy rating for Datadog.
According to TipRanks, Nowinski is a 5-star analyst with an average return of 15.9% and a 53.11% success rate. Nowinski covers the Technology sector, focusing on stocks such as Datadog, Palo Alto Networks, and Varonis Systems.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $140.00 price target.
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Datadog (DDOG) Company Description:
Founded in 2010, Datadog, Inc. provides a monitoring and analytics platform for developers, information technology operations teams and business users, through an SaaS-based data analytics platform.
