Evercore ISI analyst Kirk Materne initiated coverage of Datadog with an Outperform rating and $150 price target. After “treading water” for two years, Datadog has matured to a point and grown into its valuation so that it can become a more consistent compounder over the next 12-24 months, the analyst tells investors in a research note. The firm does not see the company’s Q2 results being a big catalyst for the stock, but when taking a view to the second half of 2024 and beyond, it believes the stock’s risk/reward skews to the upside based on the potential for upside to estimates, the continued expansion of Datadog’s total addressable market, and optionality around its new artificial intelligence offerings.
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