TECH - Datadog's Strong Start To 2024: Analysts Optimistic About Ongoing Market Leadership 'More/Faster Cloud Software Creation Is Better | Benzinga
Morgan Stanley analyst Sanjit Singh reiterated an Overweight rating on Datadog, Inc (NASDAQ:DDOG) with a price target of $137.
The analyst highlighted that in a challenging software environment in the first quarter, Datadog delivered a bona fide beat and a forward estimate raise. As a perceived cloud attach play, he noted the market was expecting a more pronounced acceleration (and forward raise) than what Datadog delivered.
Singh noted that underlying fundamentals were improving, as evidenced by enhanced usage trends and reduced optimization activity.
Furthermore, strong product innovation positions the company well for strategic consolidation opportunities in the enterprise at a time when new products outside of APM, Infrastructure Monitoring, and Logs are starting to contribute. He noted this should translate to 25%+ growth in 2024, with the potential for growth to sustain and accelerate in 2025 and beyond when AI workloads go live in production environments.
Singh said the shares still look attractive for a platform company taking a share in a large addressable market with ...