TECH - Datadog's FY24 Revenue Consensus Do Not Align With Management's Historical Guidance Trends - This Analyst Downgrades Stock | Benzinga
Wells Fargo analyst Andrew Nowinski downgraded Datadog Inc (NASDAQ: DDOG) from Overweight to Equal-Weight and lowered the price target from $120 to $95.
The analyst's thesis reflects four fundamental tenets. First, the cost optimization trends persist and will likely last for a few more quarters into 2024. Second, the FY24 consensus revenue estimates do not align with management's historical guidance trends.
The third tenet is his belief that Datadog can gain share following Cisco Systems, Inc's (NASDAQ: CSCO) acquisition of Splunk Inc (NASDAQ: SPLK). Finally, he notes Datadog's new AI-based solutions could become significant, long-term growth drivers.
The analyst noted that the cost optimization trends that pressured revenue growth over the last year continue ...