Investment Bank Raises Its Price Target on Datadog (DDOG)
After conducting in-depth research into Datadog's (DDOG) observability market, investment bank DA Davidson increased its price target on the name to $125 from $115.
The investment bank identifies DDOG as a top pick in the software market.
Meanwhile, investment bank Rosenblatt Securities remained upbeat on DDOG but slightly cut its price target on the name.
Is Datadog, Inc. (DDOG) the Best Growth Stock to Buy According to Billionaires?
A close-up of a laptop with a software engineer coding on the monitor.
DA Davidson's Conclusions
The investment bank estimates that DDOG is poised to generate annual growth of 20% to 25% for multiple years.
In the wake of worries about OpenAI damaging Datadog, DA Davidson does not expect any negative impact on DDOG to last over the longer term.
Rosenblatt's Take
After DDOG delivered strong growth in Q4, the trend probably continued last quarter, according to Rosenblatt. As reasons for the latter conclusion, Rosenblatt cited the favorable reports by the large cloud-service firms and increased demand for AI.
Additionally, the investment bank predicts that DDOG's existing customers will buy more of its offerings going forward.
Rosenblatt cut its price target on DDOG to $150 from $160 but kept a Buy rating on the name.
The Recent Price Action of DDOG
In the last month, the shares have climbed 22%, while they have fallen 27% in the last three months. The stock has retreated 25% in 2025.
While we acknowledge the potential of DDOG, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DDOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey
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