Analyst William Power of Robert W. Baird maintained a Buy rating on Datadog, retaining the price target of $165.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
William Power has given his Buy rating due to a combination of factors including Datadog’s impressive financial performance in the third quarter. The company reported a revenue of $885.7 million, surpassing the initial estimate of $848.5 million, and demonstrating a year-over-year growth of 28.4%. Additionally, the adjusted operating income of $207.4 million exceeded expectations, contributing to a strong operating margin of 23.4%.
Furthermore, Datadog’s guidance for the fourth quarter and the full year 2025 has been raised, indicating continued growth momentum. The company also showed strong customer traction, with a notable increase in large customers and a significant portion of its customer base using multiple products. The robust balance sheet, highlighted by substantial free cash flow generation, further supports the positive outlook. Despite some risks such as competition and macroeconomic factors, the target price of $165 reflects confidence in Datadog’s growth trajectory and financial health.
In another report released today, J.P. Morgan also reiterated a Buy rating on the stock with a $0.00 price target.