Oppenheimer analyst Ittai Kidron highlights Datadog as a top pick for 2023. His bullish stance is predicated on his view that Datadog is relatively resilient to macro pressures, given the mission-critical nature of its observability solutions; continues to benefit from selling additional product modules which should further expand with a move to application/cloud security; can maintain operating margins in the "high-teens" despite the return of pre-pandemic operating costs and investments in R&D/S&M, all the while growing revenue over 30%; and offered a conservative Q4 2022 guide which offers lower downside risk near-term. Kidron views Datadog as a core long-term holding and reiterates an Outperform rating on the stock with a price target of $105.
Published first on TheFly
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