Wedbush starts Datadog at Outperform, sees ‘long runway for growth’

Wedbush analyst Taz Koujalgi last night initiated coverage of Datadog with an Outperform rating and $101 price target. Datadog is a leader in observability with an expanding portfolio and "long runway for growth," Koujalgi tells investors in a research note. The company has a "unique combination" of growth at scale and 20%-plus free cash flow margins while holding a strong competitive position and is levered to the secular trends of cloud migration and digital transformation, says the analyst.