Shrenik Kothari, an analyst from Robert W. Baird, maintained the Buy rating on Datadog. The associated price target is $150.00.
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Shrenik Kothari has given his Buy rating due to a combination of factors that highlight Datadog’s strategic positioning and growth potential. Datadog is seen as having a robust observability platform, and the potential acquisition of GitLab could further enhance its capabilities, particularly in the DevSecOps space. This acquisition would allow Datadog to integrate more deeply into the early stages of application development, providing a competitive edge in monitoring and security.
Additionally, the financial outlook for Datadog remains strong, with projected revenue growth and operating margins that compare favorably with industry peers. Despite the potential integration risks associated with a sizable acquisition like GitLab, the strategic benefits and financial health of Datadog support a positive outlook. Kothari’s target price reflects confidence in Datadog’s ability to maintain its growth trajectory and capitalize on emerging opportunities in the software market.
According to TipRanks, Kothari is a 5-star analyst with an average return of 25.3% and a 70.63% success rate. Kothari covers the Technology sector, focusing on stocks such as Tenable Holdings, Check Point, and Okta.