Citi analyst Fatima Boolani has maintained their bullish stance on DDOG stock, giving a Buy rating on June 18.
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Fatima Boolani’s rating is based on Datadog’s robust positioning in the market, particularly highlighted during the DASH conference. The company has demonstrated a strong integration of AI across its portfolio, particularly in security and observability, which is expected to drive healthy usage growth and competitive momentum. Despite some constraints in budget availability for new features, the potential for AI to catalyze budget growth in the medium term is seen as a positive factor.
Furthermore, customer sentiment remains positive, with Datadog maintaining a favorable competitive position and technological leadership. The expansion of its product portfolio, especially in shift-left and cyber use cases, along with trends in generative AI, are anticipated to be incremental growth drivers. The demand for Datadog’s core observability functions remains strong, countering fears of market saturation, and the company’s efforts to enhance its go-to-market strategies are expected to support steady growth in net revenue retention.
In another report released on June 18, Bank of America Securities also maintained a Buy rating on the stock with a $150.00 price target.
Based on the recent corporate insider activity of 141 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of DDOG in relation to earlier this year.