Datadog (DDOG) PT Raised to $205 at Stifel

Stifel analyst Brad Reback raised the price target on Datadog (NASDAQ: DDOG) to $205.00 (from $135.00) while maintaining a Hold rating.

The analyst commented, "Datadog is up ~20% midday, as core revenue growth (20%) accelerated Q/Q driven by sequential usage growth (highest in 12 quarters) that was broad-based across customer segments and industries. The company also posted accelerating >$100k adds (+210 Q/Q, highest since 12Q22), as well as accelerating contribution from new customers. While the core accelerated, 4% upside was a touch below 5% last quarter as the ~$15M of sequential genAI revenue growth was about half of 2Q's level as the early 4Q OAI 9-figure renewal likely had a retroactive 3Q discount. With DDOG now showing across the board acceleration, we believe management will no longer disclose genAI contribution metrics beginning in CY26. Net/net, we believe 3Q results highlight that recent S&M investments are appreciably materializing, and we hope that management sustains spending in order to maintain durable core revenue growth. We increase our TP to $205 (~14X CY27E EV/Revs of $5.04B)."

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