Datadog upgraded to Buy at BTIG following strong checks

As previously reported, BTIG upgraded Datadog (DDOG) to Buy from Neutral with a $143 price target after having spoken with 10 partners, five of which skewed to large enterprise, and concluding that cloud cost optimization initiatives related to weakness in the broader macro environment are mostly complete. The firm sees tailwinds for the broader observability market on the horizon and thinks Datadog is best positioned to win business from Splunk as customers are in early stages of looking for alternatives following its acquisition by Cisco (CSCO). The firm, which adds that near-term checks on the demand environment were “encouraging,” sees Datadog as “the best play in the observability market with a large opportunity to gain share.”