In a report released today, Brad Reback from Stifel Nicolaus maintained a Hold rating on Datadog, with a price target of $205.00.
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Brad Reback has given his Hold rating due to a combination of factors influencing Datadog’s recent performance. The company’s core revenue growth has shown acceleration, with a 20% increase quarter-over-quarter, which is the highest in twelve quarters. This growth was driven by broad-based usage across various customer segments and industries, indicating a positive trend.
However, despite this positive momentum, the upside was slightly below expectations, with a 4% increase compared to 5% in the previous quarter. Additionally, the sequential growth in generative AI revenue was lower than anticipated, potentially due to a retroactive discount. While the company’s sales and marketing investments are starting to show results, the mixed signals from different revenue streams contribute to the Hold rating, as the outlook remains cautiously optimistic.
According to TipRanks, Reback is a 5-star analyst with an average return of 10.6% and a 53.51% success rate. Reback covers the Technology sector, focusing on stocks such as Intuit, Oracle, and ServiceNow.
In another report released on November 2, CIBC also initiated coverage with a Hold rating on the stock with a $170.00 price target.