Datadog initiated with a Neutral at Piper Sandler

Piper Sandler analyst Rob Owens initiated coverage of Datadog with a Neutral rating and $72 price target. The company has built the preeminent cloud-focused observability platform, the analyst tells investors in a research note. However, the firm believes longer-term consensus expectations that call for a multi-year acceleration past 2023 have diverged from infrastructure as a service expectations, and the level of upside to guidance in 2023 "may be less than many are looking for." As such, Piper feels the shares leave little room for upside.