Citi Reiterates Buy Rating on Datadog (DDOG)

Citi analyst Fatima Boolani reiterated a Buy rating and $150.00 price target on Datadog (NASDAQ: DDOG)

The analyst comments "We have mixed views on DDOG+GTLB merits, should unconfirmed press reports (Reuters, 17 July) of this combination transpire. Beyond obvious NT dilution (GTLB/DDOG OPM ~5%/~25%), the deal would introduce integration/execution risk (OKTA/Auth0 cautionary tale) given substantial departure from acqui-hire M&A form, foment observability market/organic growth saturation fears, and stoke skepticism on at-scale monetization success across diverse/diffuse personas, where dev/ops/security is still largely siloed procurement-wise, with historical reticence towards “platformization” across these groups. However, we acknowledge secular pluses of symbiotic OSS ethos (mainstreaming), beefier DevSecOps story (where DDOG has stumbled), stronger monetization influence and discipline on a captive and likely overlapping, 30M-large dev audience (better PLG best practices=higher ARPU), and deep/broad ownership of the SDLC auguring tangible productivity/overhead benefits (soup-to-nuts IT telemetry data gravity)."

For an analyst ratings summary and ratings history on Datadog click here. For more ratings news on Datadog click here.

Shares of Datadog closed at $130.77 yesterday.

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