William Blair analyst Jake Roberge has maintained their bullish stance on DDOG stock, giving a Buy rating today.
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Jake Roberge has given his Buy rating due to a combination of factors including Datadog’s strong financial performance and strategic customer engagements. The company reported a robust third-quarter with a 28% revenue growth, surpassing market expectations significantly. Additionally, Datadog secured an early renewal from its largest AI-native customer, which alleviates potential investor concerns regarding customer retention.
Moreover, the company is experiencing increased adoption of its new AI solutions and security offerings, with security ARR growth accelerating to the mid-50% range. Datadog’s digital experience suite has also surpassed $300 million in ARR, indicating strong market demand. The company has seen improving usage trends across both enterprise and SMB customers, with non-AI-native usage growth reaching its highest in 12 quarters. These factors, combined with a doubling of new logo annualized bookings year-over-year, underscore the effectiveness of Datadog’s product and market strategies, justifying the Buy rating.
Roberge covers the Technology sector, focusing on stocks such as Jamf Holding, Appian, and UiPath. According to TipRanks, Roberge has an average return of -3.5% and a 39.20% success rate on recommended stocks.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $220.00 price target.