Analyst Koji Ikeda of Bank of America Securities maintained a Buy rating on Datadog (DDOG – Research Report), reducing the price target to $136.00.
Koji Ikeda has given his Buy rating due to a combination of factors, primarily focusing on Datadog’s strategic acquisition of Metaplane. This acquisition is expected to enhance Datadog’s capabilities in data observability, particularly in monitoring and resolving data issues across various platforms like Spark, Databricks, and Snowflake. By integrating Metaplane’s technology, Datadog is likely to strengthen its position in handling AI and generative AI workloads, which are becoming increasingly data-intensive.
Moreover, the acquisition aligns with Datadog’s historical strategy of making tuck-in acquisitions to bolster its offerings. Although the financial implications of this acquisition were not detailed in the announcement, Ikeda expresses confidence in Datadog’s potential for sustained revenue growth. The acquisition is seen as a positive step towards achieving the price objective of $136, up from the current price of $94.06, reinforcing the Buy rating.
In another report released on April 21, Barclays also maintained a Buy rating on the stock with a $125.00 price target.
DDOG’s price has also changed moderately for the past six months – from $121.520 to $94.580, which is a -22.17% drop .