Morgan Stanley analyst Sanjit Singh has reiterated a Hold rating on Datadog, setting a price target of $165.00. This rating reflects a mix of market factors impacting Datadog’s current position and future growth. The company benefits from a stable demand environment, with core growth likely improving as new bookings convert to revenue. However, strong growth from OpenAI could decline by 2026, posing risks to forecasts. Although Datadog has recently outperformed due to optimism around OpenAI, its current premium valuation and high near-term expectations complicate the outlook. Notably, the core business—excluding OpenAI—shows potential for better growth driven by consistent bookings and increased AWS performance. Meanwhile, uncertainty about OpenAI’s future impact and developing custom AI applications keeps the Hold rating intact. Additionally, Stifel Nicolaus also maintains a Hold rating with a price target of $135.00, highlighting the cautious sentiment surrounding Datadog’s market performance.
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